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Becca,
FWIW, many of us don't consider the 700 to be an "upgrade" from the 505. The two models have different features--the 700's touchscreen is not always considered an advantage over buttons, and many people dislike the lighting feature that makes the screen blurry.
This will probably continue with Sony's new models, the 300 and 600. While the 600 offers obviously more features (memory card slot, dictionary, annotations), there will still be people who dislike the touchscreen, and prefer the smaller size. Some will prefer the 300, and not just because it's cheaper.
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