What I don't understand is why, when Boeing launched the 737NG, they didn't opt instead for a 757 shrink + re-wing. The 757 had a newer basic design than the 737-3/4/500. At the time of the NG launch, the 757 appeared to have a good future: the 757-300 development was, as far as I remember, about the same period.
If Boeing had updated/shrunk the 757, would they not be in a better position now? What am I missing? (Just an SLF here).