This image shows the size of a 3.5 screen in your 4.1 tablet. The white square is the smaller screen (nearly) centered, and the blue one is flushed.

The 3.5 screen being 85% of the size of the 4.1 means it should take the same area of you vision if you put the device 15% closer to your eyes. You can test this with this image, see where the screen is, then move it closer to you until the rectangle takes the same size...

I didn't find it much bad. It may be good to prevent people from snooping!