Its hard to draw even remotely useful conclusions from this data because, as anyone who follows the smart phone market knows, the flagship phones for most non-Apple manufacturers only come with larger screens. You can't even get a Galaxy Phone smaller than 5" anymore. And for the phones that are available in smaller screen sizes, they are lower specced versions. Carriers and manufacturers are driving screen sizes to be larger, rather than the market showing they want the larger sizes by having choices.
I agree with your conclusion. I think most consumers aren't necessarily in love with super-huge displays. I'm sure there is a small segment of consumers who do prefer larger displays due to poor eyesight or for watching videos. The problem is with Wall Street and analysts drawing wrong conclusions about how the current iPhone is a fail because of the smaller display. I'm only saying that Apple should at least offer a larger display for those who do want one. Why should it be so difficult for Apple to offer a larger display when nearly every other smartphone manufacturer is able to?