Nope. 5", 16:9, 960 x 640 screen
Lower PPI, all apps run the same, stuff is just bigger.
Same reason developers don't have to do anything (for most apps) for the iPad Mini.
Not that I think it's a strong possibility, but this could work especially if it's for a "low cost" market (cheaper display, probably A5 Soc, etc).
That would be ridiculous for Apple to bring out when all competitors are bring out 5" 1080p phones now.
It would be the beginning of the end.
wants to cover more markets and more screen sizes, they will cover more markets and more screen sizes... You were right when you said that they will never license iOS for use in other devices, but the fact that you'd bring it us basically says you think it's more possible than it is, which is not at all.