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 It's just a hunch. There is no actual evidence to support my pessimism. I do agree with you that split screen multitasking would be great on a larger device. And this way, if I were wrong, and Apple does release a larger iPad this year, I will be pleasantly surprised. Shouldn't there be leaks though? Everything that Apple releases lately has been accompanied by leaks and photos.
I'm going to be a pessimist.   I'm definitely getting a new iPad soon, and I'd love to have an iPad Pro, but I just don't see that happening this year. I hope that I'm wrong of course.
 There is a recovery key that you get when first setting up two step authentication.
 I had set up my devices a long time ago, so you do perhaps have to go through the SMS to phone step at least once. I think that I read something about certain telecoms blocking certain SMS messages, so perhaps that is your problem, if it is your telecom that is blocking the SMS from Apple.
 You can also choose to have the code delivered to another device instead of SMS. I had the choice of SMS or to a number of iOS devices that I have. I chose an iOS device and in literally one second the code showed up on the screen. 
 I am in the US. I do already have two-step setup on my iOS devices, but I thought that it would ask me for the security code whenever I try to log into iCloud, at least that's what I thought after reading the OP. I guess that I'm mistaken about that, and since I already have two-step setup on my devices, it just allows me to log onto iCloud without the security code.
I don't log into iCloud all that often, but I just did, to test this two-step system, and after I logged in with my Apple ID, that was it. I was in iCloud, everything was accessible and it never asked me for any security code.   Why is that?
 Your bank needs to be a part of it, I believe. It doesn't matter if you have a Visa or Mastercard if the issuer is some no-name bank that hasn't yet joined.
 That's an interesting idea. There are an awful lot of sensors on the bottom of the Watch to merely detect heartrate. It would be cool if there was some kind of vein scanner on the Watch, and that would make Pay payments very easy and convenient.
 I'm wondering how it will work when using Pay with the Watch. There's no TouchID on the Watch, and Apple didn't get into any details about how exactly one would pay using their Watch.
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