Nintendo DSi with larger screen in the works

Seems that there is a new Nintendo DSi that is in the works according to some rumors, where it will hit Japan first (where else), featuring a slightly larger 4″ display on both top and bottom segments. Nice to know that the same rumor also points to a similar price point as the existing DSi despite offering 3/4 of an inch more in terms of viewing area, targeting an older market who might have problems with their eyesight. Won’t the graphics be more pixelated then with the larger display? Either that or could this also feature new hardware within to substantiate the NVIDIA Tegra rumor with the DSi?