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Something around 6" seems right to me. You could probably talk me into 7". What I like about the 6" Kindle 2 / Kindle 3 / Kobo that I've experienced is that they are mass paperbackish in terms of printed word real estate. I think trade paperback would work too -- hence my hesitation about ruling out 7".
But either larger or smaller start hitting trade-offs: too few words (especially if I increase the font size) or starting to get unwieldy to handle.
The thing that I love about eink devices is that they are very light and long battery life. It's always ready to go and, unlike my cellphone, I don't have to remember to plug it in every night.
Magazines, and newspapers, are still a tough sell for me on eink devices: colour or not, they are way too small. I wonder about 10" -- is that enough? I don't think so. Magazines are about double-page spreads and even a 12" device isn't big enough. And newspapers are out of date so quickly ... you really want the website version. At that point you've ceased to talk about newpapers and the thing is web access. That's a long way from b&w eink devices nicely focussed on long form reading -- and is exactly why I think they have a longer term future and why color (and certainly video) isn't so important.
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