That fat finger remark is definitely an homage to Jobs. He said people would have to sharpen their fingers with a pencil sharpener to use a 7" tablet. Meanwhile there are rumors Apple is now thinking about a smaller Ipad.
I prefer the 7" because I can hold it with one hand for hours. My Ipad is too heavy to hold for any period of time with one hand. Hard to use a touch interface with no hands free.
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