Neat experiment, but I just couldn't deal with the size. I've put my N7 in my pocket, because it does fit, but it's usually part of a joke about the increasing size of phones. Other than the size, the N7 feels quite a bit less responsive than my Nexus 4. I do prefer the N7 for two-handed reading, typing and browsing (and to save battery on the N4).
As somewhat of an aside, I love viewing the large screen on the Nexus 4, but ergonomically, it's just too much. If I can't hit all four corners with my thumb without changing my grip, it's not optimal. I have large-ish hands, but my Nexus One is the perfect size for one-handed use.
I'd love to have a modern, vanilla Android phone with a 4" screen. And without a glass back.