Makes perfect sense to me. I never understood the 7". The only advantage I could see is cost - or maybe women being able to stick it in their purse. Apple likes to keep it simple. A lot of the success of the iPhone has been that there was only 1 phone where windows mobile allowed manufacturers to makes phones with a dozen or so different resolutions and aspect ratios - I can only imagine how much of a pain that was for WinMobile developers.