7" takes it into a whole different niche (one that hasn't proven to be very lucrative for the companies already involved). A 7" option with a nice, fat, OMAP3640, big battery and lots of storage options would be interesting, but it'd also be expensive, a lot more pointless than a ~4" tablet (not pocketable, not worth it) and probably not worth the prototyping costs for Nokia to implement.

Leave it to the Atom guys, I say, and install Mer on one of those if you're really hankering for that Nokia experience.