I know the sandpaper joke is getting boring at this point, but bear with me for a second. Though Jobs famously dissed seven inchers as being too small to comfortably operate "unless you include sandpaper so users can sand their fingers down to a quarter of their size", many watchers and journalists have been overanalyzing the repercussions of Apple's rumored inexpensive 7.85-inch iPad, allegedly slated for a September launch.
I'm also guilty for this, having recently explained why I thought Apple must deliver the iPad mini sooner than later (hint: it's the ecosystem, stupid). So let's assume for the argument's sake that the iPad mini is coming soon, rocking a 1024-by-768 pixels packed on a screen between seven and eight inches diagonally.
How would the new form factor affect developers, end-users and usability?