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The Kindle 3 and Kobo are virtually the same size (the Kobo slightly thicker). I prefer the form factor over the Kindle 2. I don't have a need to slip a reader into a pocket but both fit comfortably into most any bag one (or one's spouse) might be dragging along.
The new Sony's are about the same size as well.
I know it's ridiculous, but the 5" screen looks WAY too small to me. And, the 6" screen Kindle 3 has made more complete use of top and side margins -- it packs more words, with the same size and line-spacing, vs the identical 6" screen Kindle 2. And, for a variety of reasons, the Kobo, too, packs less per page. So ... I'm a little shy about considering a 5" screen.
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