This is true, but there is also an indicator of trends and clearly a larger form factor is winning out.It's called personal preference. For me, a 4 inch screen is way to small for every day use. ESPECIALLY one handed. Typing is cramped in portrait mode. So for me, the 4.7 inch screen on my Nexus 4 is perfect. It fits beautifully in the hand and one handed use is a breeze. But that's just ME.
I also love how before the iPhone 5 came out, people were like
"3.5 inch screens are perfect. 4 is too big."
now
"4 inch screens are perfect. Anything bigger is too big"
Use what works for you. If you have tiny hands or feel that screens that are a 1/2 inch larger are too uncomfortable, choose what you like based on your needs.
I have nothing against anyone who loves a minuscule screen, if that suits you then more power to you. However, it's very difficult for me to fathom how people can be so blindly loyal to one company, i.e. Apple, that they refuse to see that there is something better.