I'm perfectly very happy with my 3.4" screen right now, so, 5" sounds good to me too.
If you'd take two exactly the same readers (software + hardware), but one has a 5" and the other a 6", I think I might actually go for the 5". Smaller, handier to take with you. As I only read novels and stay away from PDF as ebook format (unless I open it on my 19"), the form factor is the most important part about size.
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