THIS..
its a cute addition, but i hope that apple doesnt think that having an extra .5-1 inch is going to make their phone any better.. and honestly, if the screen size is a significant factor, i think the priorities are in the wrong place... phones were never meant to be mini netbooks or tablets..
the reason why android is selling so well is b/c of its availability virtually everywhere on the market, price, and array of phone designs... whereas apple only has 1 current gen iphone for a given year/+.. if apple put out 3 more iphone designs, and refreshed ALL of them for a unique quarter on a yearly basis, then apple would take command of the marketshare w/o a doubt... but if android keeps putting out 15-20 new phones to apple's 1, they'll keep winning..
so we could look forward to next year like "yeah android is coming out with the Droid 5 in 2014, but we'll still have 3-4 iphone launches in 2014, and 1/+ of them may be a better phone imo".. instead of waiting to WWDC and it being an ALL OR NOTHING impression on the ONLY IPHONE design to be produced for that year...
increasing the screen size is kinda submissive IMO for apple.. it doesnt make the phone any better and its just a passive aggressive way to say "we'll take the screensize talking point away for non apple adopters"... but if anyone is actually making a phone choice based upon the difference in apple vs android screen size, they're missing a few screws upstairs... that shouldnt be a factor at all..
i think apple needs to keep their original screen size and branch out with a 2nd iphone line with a bigger screen and different design.. because apple (at the moment) only has one iphone... and having to carry around a bigger phone is not going to be a welcomed change from all apple users
the real war is on the OS front.. and apple needs to really kick butt in iOS 6.0
if i want a big screen, i'll use my ipad...
but most importantly, its 2012, we need more phone options, im tired of the rumors... make it happen already
but im fine if apple wants to be more android-ish... try to be like them on the phone diversity front.. not necessarily the screen size issue