My thoughts on the "conceptual" PS3 pad:
I'd much rather a pad that's a bit to small, than one that's too large.
Handles that are too large can cause sore hands after prolonged use.
To me playing with the "duke" pad feels a bit like having put to much chewing gum in your mouth; you can never close your fingers around it and get a good grip.
Even people with very big hands can use handles with a small diameter, just think of various kinds of cutlery, knives and pens. It doesn't work the other way around.
I almost think the continuous complaints about the size of controllers is some kind of poorly hidden penis comparison/bragging contest thing.
With the PS3 pad being so small the placement of the sticks and buttons becomes much less important, because you don't have to twist you thumb so much to reach the different parts of the pad. So SCE can keep the old layout for all I care, if it's as small as the picture would have us believe.
The biggest reason that games such a FPS shooters and strategy games are so much more playable on the peecee, is of course the mouse.
Nintendo realised this and released the DS, and invented the revolution controller that can do so much more than a regular mouse.
But if SCE could just invent something that would be as good as a mouse and include it in the PS3 pad, that would be a very very big advantage over 360.
It would probably be some kind of analog motion sensing in the pad.