I love my 788 but agree there's a place for an excellent tiny 2-channel recorder. I also use a Zoom H4n, but only have good line-in results using attenuators to phono-in, which makes it very impractical to use/mount/handle.
I'm wondering if anyone has used one of these yet:
It's a tiny digital recorder by Zaxcom. It's only single-channel and about $900, but for the form factor (2.4" x 2.4" x .65") it has a lot of potential.
Then there's the Sonosax MiniR82 if you have $5000 to drop. Seems like there is an important niche in between that SD could fill nicely.