I have a 7" Android Tablet that I used to use heavily. I had a Moto Droid 2 smartphone that was nice, but the bigger screen of the tablet was enough of a draw that I'd use the tablet a fair amount for personal browsing.
That all changed when I got my new phone, a Moto Razr Maxx HD. The screen is bigger and sharper than the Droid 2, just enough that the relative usability of the tablet almost disappears, and the fact that my phone already has all "my" stuff on it from earlier today is more of a draw.
My 7" tablet has been charged and ready to go for months, but I haven't picked it up even once since.
There's a balance; I think the Galaxy Note is too big, but I think that the Razr Maxx could be just a few bits bigger. If the Galaxy S3/S4 had the battery life of the Razr, I'd probably bite. However, the battery life of the Razr Maxx is so ridiculously awesome, (especially when traveling) I'd never want to give that up!