It's subjective and at least for me, it's a very noticeable difference. Many now view 3.5" as the minimum screen size needed for a great experience. On a 3.2" screen, text will tend to be very small. Sometimes it can be changed in preferences, but in web pages you may find yourself zooming more. Of course, with video larger is generally always better. It also comes down to what you're used to. I think the extra $50 for the Transform may be money well spent. The Intercept has a non standard resolution (400x240) that limits it from some apps like Angry Birds, the Transform (480x320 hvga) should not have that issue. The price difference is $2/mo over a 2 year contract.