Oh, are you the spokesman for 'people'?
Some people, believe it or not, have smaller hands than others, and the largest phones available now are already way too large for such people.
Other people are also female, and female clothing, believe it or not, has tiny pockets compared to male clothing, which means any big phone wont fit in most female pockets. A smaller phone can largely solve this
To you it might seem obvious that a larger screen is better, but don't act like that's what 'people' want. In fact, the smaller variant of iphone models has sold better basically ever single year since they had 2 different sizes. Now there are 3, and it looks like the middle size will be most popular. So I'd say the 'people' want a medium sized phone, if anything.