Some people think 10" tablets are too large for extended use without a stand.
Some think 7" tablets are too small. Samsung's approach seems to be the goldilocks approach small, medium, large.
The 8.9" tablet could be "just right" for those who feel 7" tablets are too small and 10" tablets are too large. Plus the 8.9" wins on pixel density.
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I look forward to seeing one and trying one. There are some times I would like my 7" GTab to be just "a little" bigger, so I think you could be right. But I also think the 7" screen is really under-rated for what it provides.