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The answer is likely to be fast packaging USB testing on the iPad itself. The simulator is the 'perfect' environment. Testing on a real device will show you gestures feel a little different as well as the real speed their events fire at. This changes a bit iPad3 to iPad4 as well and with double the performance speculated on the iPad5 with the A7 chip you can bet that will change yet again.
Otherwise, for testing, you could 'stub' your app if you make no references to 'root'. set the stub stage to the largest size your monitor will allow you to test on. Load in your apps real SWF and set the size however small you need it.
Otherwise the obvious of course, get a bigger monitor
Thanks for your advise. But it would be helpful if the simulator simply had the same Show All ability as the SWF preview. Often I just need to verify some flipping algorithm, or algorithm for moving objects via the accelerometer. And I don't always have the device handy. It's a simple feature, I'm confused why Show All isn't available : (
I wish it was too, believe me. There's plenty of things I think need a little polish in AIR apps. I don't like setting a width/height in the XML and then have to resize the app programmatically to account for varying system chrome. Things like that are peculiarly difficult for no good reason. Although you can get away with testing using the methods mentioned above.
You can always bring it to a feature request level with the wishform: