to try to reply to the original question, i have a 700 and the difference in display quality is pretty flagrant when placed side-by-side with a 505 but much less noticeable when taken on its own. if you had a 505 already and were used to that screen, you might be bothered by it, but if you do get it as your first device you could easily discover that it doesn't bother you (as i and many others have) and consider that the improved ergonomy and other features make up for it. note, i don't think it's perfect, and i do plan to upgrade someday for a device which has the ergonomy and features of the 700 and hopefully more still) and a better screen, but i do think it's a very good device nonetheless and the UI and ergonomy are worlds better than other devices currently available, and this is important to me.
you might want to wait just a couple of months before you decide ; ceBit is coming at the beginning of march and we may see some new devices announced there.
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