This response is skewed. That is over a year ago when large screens just picked up. It also includes tons of manufacturers that don't have the budget to make large size phones in volume (LCD costs more money in large size). Do you want a fair assessment?
Ask a manufacturer that makes sizes in all sizes and ask them which sells the most? Ask Samsung. If I remember correctly, the Galaxy S3 and Galaxy Note 2 are all 4.3 inches or larger (your definition of large size). My definition of large size is enough to put in 1080p. (I can handle 4.5-5.5 no problem). And I see what you did there, shifting to size, rather than tackle the 1080p problem.
As for seeing detail, just look at the reviews. People say the HTC Droid DNA screen trumps all smartphone displays? Why? They all say the 1080p. So yes, there is a perceptual difference. It IS a 1+1=2 simple answer. 1080p looks better. Besides, only at 1000ppi can you not tell the difference between pixels when holding it about 6 inches in front of your eyes. The iPhone is only 326ppi. And this is scientific degree arc calculation from eye experts.
So in conclusion, this dodging the large screen and 1080p is gonna cost Apple 1.5 years of lost time and customers (that is if they wake up). If they don't wake up and stick to the small screen size, they are gonna repeat themselves over again, as even slow java android has more marketshare than them right now just simply being able to ride the tech wave (larger screen, faster processor, more variety, etc).
The extra sharpness of the DNA's panel is nice, but it's not a gamechanger. Some even say it's not even noticeable until up close. Plus, it causes additional battery and processor strain. By the way, there doesn't seem to be a consensus on the PPI at which the naked eye can no longer discern pixels, seeing as how only like 3 "experts" chimed in on the subject and none had agreeing opinions.