I REALLY think that this would be a good idea - with just a minor modification: not that wide, but also higher. Just a bigger screen (U know, I'm getting older). Just repeating from a provious post:

One thing ... which I could imagine - and would recommend to Nokia - is a device which would electrically be identical, but just have a bigger screen (double the diagonal = 4 times the area. Same resolution, just bigger pixels). Same look. Possibly two batteries instead of one, but no other extras. Then sell it at exactly the same price as the 770.

Why that:
Diversify for different user populations without getting into trouble with incompatibility issues.
Relatively easy to develop (electrically identical). Bigger screens are lower tech, might even be cheaper in purchasing. Manufacturing would also not be that different (well, somewhat, for the mechanics...)