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Like Harry, we recently decided against getting a new TV larger than a 32", even though the next size up wasn't enough more for cost to be a deciding factor. We live in a small, modern shoebox of a house, and anything larger than a 32" would overpower the room. (the previous one was smaller, but had about the same impact as it was a crt, and so bulkier)
As far as readers go, if Sony had produced a 5" one considerably cheaper (relative to the cost of the 505) than the 505, I might have gone for that, purely on cost grounds. I might also have gone for the iLiad, or an 8" Sony if one existed, had they been not much more than the 505. This is working on the assumption that all these devices have eInk screens, similar battery life etc.
I've stressed might in that paragraph because there are other factors at work than just the screen size. The one thing that really endeared me to the Sony was how it felt in my hands. With the case, it sits between a-format and b-format paperbacks, which for me is a very comfortable size. An 8" screen is certainly nice to read on, but the surround makes it, for me, not as nice to hold.
As far as phones go - the fact that the original Blackberry took off so well shows that size isn't everything if the functionality is right.
Laptops all depend on how you're using them. At work we have them ranging from UMPCs up to 17" - each is right for the use they are put to.
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