Well they were referring to an ipad competitor rather than iphone... indeed it doesn't sound very pocketable.

I feel that this ipad + imitation fad would leave room for smaller physical formats too, but maybe Apple + imitators know best what everybody/market wants?

Also this piece by The Street, with Finnish analyst's comments no less, wrote about Nokia's plans more as a fact rather than rumour.

Obviously I can't vouch for any of this, therefore my "if..." comments to it.