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I don't see the size as anything special, I don't see that as a big factor in its marketability. Now its having the highest available eink screen resolution and an excellent frontlight, that is where the HD comes in and that may account for the demand.
As to tying their ereader customers to their book store, that seems to be a major driver for their firmware design and development. I bought exactly one ebook from Kobo prior to purchasing my two AuraHDs and none afterwards. I won't tie my ereaders or my ebooks to someone else's servers.
Luck;
Ken
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