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For a portable, carry-everywhere device I think the 5 inch reader is just about the perfect size. But for PDFs and such, something with a screen at or near 8.5x11 inches would be very nice. And some day, hopefully, really large, high resolution color readers (say, maybe 2 feet diagonally) for art books.
Eventually, I think pretty much everyone who cares about reading will have several readers of various sizes and types, the same way people now tend to accumulate multiple computers, cell phones, mp3 players, and such over time.
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