There is no "normal" size. People are buying all kinds of sizes. Only the iPhone owners think something close to 4" is normal but that's mostly because Apple has clung to that size for too long. Even Apple recognizes it's time to shift so they are abandoning what was previously spun as "perfect" which, by the way, replaced 3.5" which was also previously spun as perfect.
As soon as Apple formally endorses these 2 new sizes, "we" will quickly shift our thinking about "normal" to these 2 sizes. I suspect we're only days now from more than few posts starting to refer to the current "normal" as "puny" and similar: "how did we every get by with such tiny screens?", etc
For the Android crowd who have models with screens bigger than 6", 5.5" may seem small and 4.7" may seem "too small". What is "normal" is very subjective.
Did they alienate a lot of customers with the original iPad Mini vs. iPad? How about the laptop lines? iMacs? It's "normal" for Apple to have differing specs in different-sized screens in most of what they make that have screens. Sure this is the first tangible model split for iPhone but it's simply following the lead of just about everything else Apple makes.
All these gripers will gripe right up until Apple rolls them out. Then, they'll jump on whichever one they want. A lot of this perceived alienation, etc will evaporate as soon as rumor is transformed into reality by Apple formally launching the products.
Have you gone out and actually seen bigger-screen smart phones or are you just basing this on your imagination? Some of the Android crowd own phones with 6" and bigger screens and aren't wearing "baggy MC Hammer" pants so they can pocket their phones.
You've sold yourself on 4.7" already. Per rumored size specs, the 5.5" is only 12mm wider (barely more than 1cm) and 20mm taller (2 centimeters, less than 1 inch taller). I made a relative sizing graphic a week or so ago to better illustrate the sizes of 5s vs. 4.7" vs. 5.5" vs. iPad Mini. Download & print it. Cut out the size you want and the 5.5" and lay one on top of the other to see how much real difference there is between the two. Here's the link to the PDF:
https://www.dropbox.com/s/2lv2phny3oiytrf/iPhone6RelSizesWiPadMini.pdf?dl=0 What should be obvious is that the physical difference between 4.7" and 5.5" is not great, and- I think- once people can actually see both screens, the pre-launch decision that 4.7" is the ONLY way to go will shift for a lot of people.
$$$$$. People want bigger screens so bad they are choosing to forgo iOS for Android on bigger screens. Apple likes $$$$$ more than they like marketing spin. They simply use marketing spin to sell whatever they are offering as a current "perfect" to try to maximize $$$$$. 3.5" was the perfect size until they launched 4". Then, 4" was the perfect size until they launch these new ones.
Marketing spin is about selling what they have now. Changing is about going where the money is. Apple has a long history of flip flopping from very passionate, very public stances. See this article for some examples:
http://www.techlicious.com/blog/5-big-flip-flops-from-apple/
I don't think so. At least for me, if the 5.5" ONLY differentiating feature was bigger screen, that would still be the one for me. Me aside, a lot of people are choosing Android over iOS because they want a bigger screen. An opportunity to get iOS on a bigger screen even if there was nothing else would likely entice a lot of that crowd.
They stop at about iPhone 10. By that point, the focus on thinning will have made the iPhone so thin it becomes invisible. I think the Apple faithful will still buy what will seem like an empty box once but then they'll be able to fake it that they have the iPhone 11 & 12 because their friends won't be able to see the iPhone anymore.