CustomDoug,
Both machines are appropriate for sewing handbags, purses, wallets, jackets, vests, belts, upholstery etc... The 2603 has a smaller diameter cylinder arm, both have the same cylinder length. Maximum thread size of the 2700 is 210, on the 2603 you can use up to 138. 2700 comes with SmartServo motor, 2603 comes with clutch motor with option to upgrade to servo. Both machines have about the same sewing thickness capacity. 2700 also has safety clutch, 2603 does not.
Feel free to give me a call if you have any other questions.
Thanks,
Ron