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The idea of a larger screen for newspapers, magazines, etc is very appealing to me. The "regular" sized eBooks just do not feel natural with those types of media. That said, using a joystick to scroll around isn't natural either. I think a successful large format eReader needs to have multi-touch touch screen as well. Multi-touch would not be just for navigating either, but also to highlight text like you would a textbook. Publishers would also have to allow a certain amount of text to be printed out. Now that would be a huge hit.
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