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You might want a bigger one just because you have a hard time reading on a small screen, or because you want to read graphic novels. But I'm not sure what you need in the way of multitasking. The iPod Touch switches between applications without losing state already. Can you say more about what you would need a multitasking OS to do that the Touch doesn't do already?
(Yes, I know what "multitasking" means-- this is a functional question, not a technical one.)
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