I still have no idea why a 7" device is somehow the ideal approach for Apple's remote. They would be better off throwing in an iPod Touch or a modified one, to serve as a basic remote out of the box, allowing people to supplant it with their own iOS device if they so choose.
I think the OP is confusing what he or she wants with what is reasonable for Apple to do.
I also agree with your comment.
Usually, remotes end up inside the couch, on the floor, or soaked with a drink.
If Apple would have considered making the Remote look like a Logitech Harmony, they would have done that already. Instead, Apple went the opposite direction, making the most simplistic remote you could imagine (now, compare it to the Remote that comes with the Windows Media Center).
That's why I find it very hard to believe that Apple will go the opposite direction at this point, specially by using a 'huge' (in comparison) 7" device
Well, nothing is going to happen this week, as I believe that Apple announced they will closed most of their corporate divisions for the holidays.
I was hoping for iOS and Lion updates... next year, then.