This device size variation is something which has not been addressed by designers or committees.
If it is displayed on a 5" screen like my PRS-300, then pull quotes, large pictures, inset paragraphs are a gigantic annoyance. If you design for my PRS-300, then you miss out of regular publishing features which can be used on a 10" tablet. There is no way to bridge the gap, except to create two separate documents to meet the needs of both devices. But this is much more work and keeping two different documents in sync is not trivial.
If you have a captive audience where a school loans/gives everyone a specific device then the issue is simplified....for that particular situation.
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