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If you want a device to take with you everyday to work, to school, then it needs to be pocketable. A 5" screen device can actually be pocketable, as long as it doesn't have too much unnecessary screen bezel.
The idea is to have your E-Ink screen to take out of your pocket anytime you are in a bus, a train, in a waiting room, on the backseat of a car, at work and in school. For those things, a 6" screen device is too big, unless you carry around with you a bag for stuff. Though most people do not carry bags everywhere that they go. I think that there are some statistics around saying stuff like most newspapers are read on public transportation to and from work, that is where the E-Ink reader needs to be targetted.
I guess though that the important thing then is that the 5" E-Ink screen needs to have the same high resolution as a 6" version so that book pages can be displayed in the same way, even though it's smaller. Another way to display books could be in larger fonts zoomed in so you have to hit the "next page" button twice as often and that it would basically show a half page per page.
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