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PhilDAS-
But you said slower, not handles slower. Skinnier 700c will roll faster
Fair point, was talking about handling.
Bit of a can of worm saying skinner 700c will roll faster, especially when the Compass Bon Jon Pass 35mm tyres is considered to be one of the five fastest tyres in the world, however I don't think they even test out 650b tyres.
edscoble
Smaller wheel decrease trail, mean quicker handling.
Adding 38mm tyres on 650b will make any road bike design for 700c x 28mm handle quicker, however it may not be obvious.