I never cease to be amazed at people who don't think the iPhone 5 is a major upgrade. What would you consider to be a major update?
Everything is new and improved. LTE speed blows 3G out of the water. AT&T coverage might stink, but Verizon's coverage is pretty extensive.
Some people don't want a bigger phone.
Don't have LTE around them
It has the same Camera (as the 4s.. but the 4 is still good)
It's marginally faster (1-2 seconds depending on the task)
Same OS (few differences)
The only thing that draws me to the 5 is how thin it is.. that's all.
It's really just more of the same.. and they didn't even improve battery life which is something that used to be highlighted.
That said.. I need a new phone like yesterday and would get the 5 if it was in stock somewhere. Seeing that I could just walk in and get a free iP4 and know what to expect with it makes me think