I'm afraid I'd agree, although the screen of the 770 is fantastic for showing off and for quick checks of the web etc. it's super high resolution is wasted most of the time with UI controls which take up half the screen. A version which was, say, 50% larger in each direction could be more interesting (e.g. for watching videos, etc.) It could well bite into the UMPC market.
A Psion S5mx with a 640x240 screen "feels" like it gets more in it, due to the lower pixel density.