I agree...the larger the better. Even with the 5x7 hoop, I often wish I could go even bigger.
BTW - I recommend trying www.emblibrary.com for designs. They are inexpensive and have been better than the higher cost designs I have bought. You can buy only the one you want, not a huge package where you get more designs than you'll ever use. They also offer coupons and sales as well as some free designs each month.