for me, i wouldnt want to watch video on a screen smaller than my laptop screen.

i wouldnt want to carry a portable movie playing device that was big enough to accomodate a 5" screen (the smallest i could picture using).

if the device could stream a ripped DVD movie to a TV via s-video cable or the like, i think thats a nice piece of functionality. but i dont think people want smaller screens. except for teh "oh look, lord of the rings on a 2.5" screen. how cute" factor.