Yes, and on the iPhone the screen size stayed the same. The elements scaled up, so they were just the same size as on the lower resolution display. If you had a 1024 x 768 screen scaled from 10" to 7", the on-screen elements would be too small to touch accurately. The text would be too small to read too, and you'd need to scale it up. Then you'd be back to square one, where you don't have enough screen real-estate to include all features that are on the 10" tablet.
And BTW, there's really no need to make your whole post bold.