There already are smaller screens (MP3 players) but that's it. I remember when some company back in 2003 (I think it was) - it was placed in a Maximum PC article - made a 20 inch model monitor... said device was supposed to ship "by next year" but didn't happen. Likely because everyone was still adopting LCD, and because of other issues. And, of course, 1080p.
I don't know why they didn't just put an SL client on there, it would have saved them the pain of building a sim (well, they technically could still build their own sim on SL)... but if Home is just like SL (except a few Sony exclusives, of course) then they might as well have just put SL on the PS3, right?
It's probably unique in its own way, but that's my opinion.
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