Having a 2 cent coin is absolutely ridiculous. Abolish it.
What's wrong with quarters? 4 of them get you a buck. Why have 10 cent, 20 cent AND 50 cent coins?
I'll concede that the 1 Euro coin is a good idea, and that the US paper $1 bill could be phased out (I'm sure exotic dancers in the US would rejoice as this would probably lead to $5 minimum tips).
2 Euro coin? Fine, we can keep it. But it's not necessary. It just makes your purse, or pocket so damned heavy after a while! Meanwhile, waiting for your change to be dispensed is rather obnoxious - going through all those denominations of coins. And watch out because they pinch pennies here and there (or more like dimes or, uh - what do they call 20 cent pieces?).
As for the different sizes of paper bills, I will say that's a great idea. It's friendly to the blind... you can feel how large your paper bills are, and know that you're not being cheated when someone's giving you change.