LittleBigPlanet was actually announced at GDC 2007. It was announced during Phil's keynote called "Game 3.0", at the same time Sony announced Home and SingStar (ps3)/SingStar Store.

 I hope both Sony and Nintendo to give us keynotes this year, they are great :)

FYI, last year MS booth was huge but most of it's area was allocated for "reserved" rooms :(

 Unreal Engine 4 has been in development since UE3 was completed. Epic always does it. After Unreal Engine 1 was done they shifted to UE2 then UE3 and now UE4. UE4 might take another 2 years to complete but there is no reason why they cant show something off. They will want to build hype about it and show they can beat the Crytek engine. 

 You have to remember GDC isnt about annoucing games its about helping the devs design better games on your platform. CES on the other hand will be where M$ and Sony show off some games and tech but Sony will also show off their next lines of TVs and other electronics to the world. Nintendo doesnt got to CES (normally) btw so I wont include them. 

Why bigger booth = dominate?

 I fully believe they will make an UE4 but I doubt it's going to get officially mentioned at GDC.  They are still working on UE3 and they just released the UE3 engine, why would they take away steam from it?

 well.. its already being made.. but ya doubt it will be at GDC but we will have to see. That is a massive booth jsut to show of UT3 on PC/PS3/360 and announce GeOW2. They have to have something else there. 

 As I said, it's pretty much cubicles with really tall walls so they can hold meetings and interviews.  :-p

 They will have a smaller booth in the main hall where they have the random person taking resumes and telling everyone how great Epic is.

Kotaku has the full pics of both rooms and the lobby now

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Pictures too big to post here, just follow the link and they're all there.

I don't follow GDC or CES closely so a couple questions,

1) It seems like bigger booths are to the left and smaller to the right but is there any connection with booths next to each other? For example, Epic, Id, Havok, and Valve all being near MS and for what it's worth VR Tools being next to Nintendo.

2) Does booth size more correlate with the quality of announcement or quantity? It would seem if it's a tech show MS would have a lot to show off though not necessarily anything amazing. On the other hand what does Epic have other than Unreal 3/4?

My brother's friend who works at MS said the same thing :)

I heard New zune/gaming device/cellphone is on its way ...

Anywho my older bro also told me the next nintendo handheld is indeed a cellphone.. but these are all just rumors :)