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The changes sound great to me! I'd be interested to see photos once you have a prototype or are offering them for sale.
My main concerns about the wallet section are (1) the leather and/or credit cards may damage the screen when the cover's closed and (2) the credit cards might fall out. Most people carry a purse or wallet already, so I don't think there would be a big demand for the wallet section, but you could always offer two styles: one with the section and another without.
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