Not to mention that I genuinely believe that resistive is better. The first thing when I get my hands on a new phone or tablet is reach for the stylus, only to find there isn't one. A finger-width precision is good enough on 7" or larger screens but even then it limits the range of applications reasonably usable on that device. (Angry Birds? Yeah, sure. Hex-a-Hop? Forget it.)

3.5" requires a pinpoint precision. Sure, you don't need a stylus, it is doable with a fingernail tap. But guess what? That does not work on capacitive screens either.