6" does make a difference, but a not a HUGE difference IMHO.
Have you considered the Nook or Kobo Touch? I know I would not like to go from my 350 to a Kindle and loose the touch interface.
The problem for me with the 350 when it comes to letter size is the large steps between sizes. Often I need the text just a little big bigger, but if I loose too much of the words on one page I don't rescale. I know there are workarounds for this, but out of the box it is a problem for me. As I understand it Kobo gives you very good control over font size, line spacing and margins. Nook also gives you more control over it than Sony, but not as much as Kobo.
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