"...I think the notion of an under $2,000. N Digital led to the speculation that it would most likely not be a full sized chip...."
We do not have any valid information, so all I can say is my personal opinion as a speculation what would make sense from my point of view and what not.
A price below 2000 USD for a fullsize chip seems today very low, but IMHO the N-camera will be available earliest next year in spring/summer. So looking at this time frame, it looks not that cheap anymore. I am sure that Canon comes inbetween with a new fullsize chip model and Kodak presented already the 14K chip for a lot less than the Canon 1ds (in Europe, the Kodak costs around 6900 Euro, the 1Ds 9900 Euro).
So we can see here already the first step into a new price war which will peak next year, if more players push into the market. Canon will try everything to keep the crown, but this will only be posssible with a very aggressive price tag, similar with the Canon 10d strategy.
Contax had no luck in marketing their first ND, so in my view it would make sense to offer next year a fullsize chip with a very aggressive price to get attention and trust back again. If they would only offer an expensive "me-too" product, they will have a hard time to sell their stuff and it would risk the survival of the complete N-system.
But a fullsize chip can be designed in different ways. It does not have to have 10MP on it. It can be also another 6MP to be able to offer it that cheap. But to be honest, if there will be a Canon fullsize 11MP camera for let's say 5000 USD and a Kodak 14MP for i.e. 4500 next year, I do not see th point to make a fullsize 6MP chip more expensive than 2000 USD. Even with the Contax name on it.
As I mentioned earlier, I do not think that it would be smart to offer anything else than fullsize for the N-mount. This is the reason why this system exists. Everything else (smaller) they can offer with the older manual focus c/y mount. It would not make sense to do it differently IMO.
Regarding the 35/1.4 with N-mount. I agree that there are many people who would love to have that one, but the question is whether the same people have in the current economical situation the fincial strenght to put the money tomorrow morning in cash on the dealers table. If there are not enough sales with this lens, which will be always more expensive than a Canon equivalent, it would not help anybody.
So the question is which lens can be sold at a reasonable price in large quantities to give Kyocera the possibility to take a deep breath for the more expensive stuff in R&D. And I think this will be in the FFL-line similar to the manual focus line lenses like 25/2.8, 28/2.8, 35/2.8, 85/2.8, 135/2.8.
We have to be aware that the sales numbers of the N-systenm are currently not very motivating to develop very expensive new lenses. The 400/4.0 was in my view a big mistake - at least in the current stage. There are not that many people who can use it. If we ignore for a moment the price tag and the fact that we have almost the same range already with a lens for the Contax 645.
"...Why would a 35/1.4 N be too large? And why would it cost $3,000.? Wouldn't it be more like $1,000. to 1,300.? For ex&le, the Canon 35/1.4L version fits nicely on the 10D...."
Look at all N-lenses currently available. All lenses are very large - even the 50/1.4. So it is unlikely that a 35/1.4 would be any smaller. If you compare it with the old manual focus system, the size-difference of all N-lenses is tremendous. There are different reasons for this, which will be discussed in detail in one of the upcoming interviews with Zeiss in this forum.
The prices would be not that cheap (up to now, I do not think anyway that they will offer this lens), because it is a Zeiss lens. You always had to pay a premium for it. The manual focus version costs in Europe 1800 Euro. It is very unlikely that a N-version would cost less. But US prices are always significant cheaper. So a N35/1.4 might cost in the US around 1800 USD - if it will be offered at all.
Again this is all speculation and not based on any kind of insider information. Just my 2 cents...
Dirk
P.S.: The N24-85 is good in handling with the NX, although I prefer the combination with the N1. But with the NX it looks "strange because of the size of the zoom