The new Eee PC with a bigger screen is real, and they have in fact crammed all 8 inches into the same sized case as the original model. Unfortunately, they stretched the same number of pixels (800x480) across the expanded screen real estate. The rumored 8.9-inch model is still on the way. (Thanks for keeping it straight, commenters.) Yesterday, we confirmed that the WiMax-enabled Eee PC is definitely in the pipes.
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If it's the same resolution, I think I'd just go for the smaller display to get a slightly sharper image.