If by size you mean it's going to become fatter, I'm all for it. PSP Slim was basically as slim as I need for things which go into my pocket. Laptops don't, so these can be twice fatter than that.
About "market failures" ... This particular "market failure" is strongly connected to patent law, which cuts down most of the potential competition. So maybe it's not a "market failure" at all if you have monopolies and oligopolies because of patents. Because patent law is not a market mechanism, obviously.