iPhone 3G Screen size

Apple has temporarily taken off the search feature for smoother Discussions running (which is good because now it doesn't take a day to load a thread) so I couldn't search to see if this was already discussed. Does anyone think the iPhone 3G's screen is smaller? It looks a tad smaller to me. It says on Technical Specs that it is still 3.5 inches diagonally. Opinions?

I guess just because of the bigger black bars? Ack..side by side comparisons of the 2 iPhones is like an optical illusion....