A 5" display would be good enough for me, but please ... no thick bezels ... I really have disdain for it. :P
Actually a device slightly bigger than a Zaurus would be ideal. A C1000 can fit a 4" screen into its LCD top ... so making it just slightly wider would give it a 5" screen and better keys!

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Maybe a hybrid dual-mode display like the one that Palm patented and that the $100 laptop is using would be ideal!