Wow! Thanks for this. As someone who misunderstood the research, it's helpful. 
But this brings up a question for me:

Intuitively, 7+-2 *seems* to be a nice boundary for many instances (number of 
choices offered, groupings) and I'm curious if there is research that bears 
this out. I know the book about how too much choice actually paralyzes people 
from choosing. and personally, I do have problems when I am forced to peruse a 
big list to choose something. 

Anything concrete from people? I think that the original research is 
misconstrued because it reinforces some design judgment/instict, and I wonder 
if there isn't something to that instinct. 

Or maybe I just want to oversimplify. ;)

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