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If you want to "upgrade" to handwriting, the only small note-capable device I know of is the MobiScribe Origin, which is 6.8". Most companies only make readers in the 6 and 7" range, and the smallest devices with writing capabilties start at 7.8". The Kobo Clara (6") and Libra (7") do not support handwriting. Only the Sage (8") and Elipsa (10.3") do.
For typing notes, you could certainly get your needs met with one of the Android-powered devices, such as the Boox Poke series, since Android has tons of notepad programs to choose from.
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