Wouldn't this potentially ruin the display? Don't get me wrong, I think the screen being bigger is great, but with out the sharpness of the display and pixels being larger, the resolution would be considerably worse, thus making the 3D effect, together with the resolution less effective. Considering that the default resolution can't be change, it's built into the game card. If this is legit, Nintendo should still keep the smaller one on the market for people who want to pay less and have better picture res.
With it being 0.5 times larger, the pixels would be 0.5 times larger. Making the display significantly worse. That is the equivalent of making a 1080p video 720p. Not a huge flaw, but I think I'll be buying the smaller one when I get money. Not to mention this is FAR to early for redesign, It hasn't even been a year and a half.
From my knowledge the 3DS doesn't even have a flaw significant enough to warrant a redesign (Aside from the battery.)