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oh I see, yes I think I agree, but that's what we're after isn't it? the circle to be circular in terms of surface distance around the center point, which as you say means it will be non-circular in terms of degrees of lat/lng? whereas if you made it a circle based on degrees then when you came to cycle it then E-W would be a lot shorter than N-S at our latitudes.
If you're referring to the difference between the direct distance and distance across the sphere, I agree. That's not the same thing though.
By my reckoning this 'circle' has a radius of 0.055 degrees latitude and 0.087 degrees longitude.