Well as long as 70% of the secret android fans here think its perfect, I'm ready to throw out Steve Job's opinion. Seriously how can any one think they could have a more informed idea of what would be perfect than someone who eats, sleeps, and breathes the iPhone? Now make that someone Steve Jobs. Its almost laughable.
Apple innovates and then leads, they don't follow. If they thought a 4" screen was best, the original iPhone would have had one. I hate to disappoint the majority of you, but the iPhone will never have a bigger screen. It may have a pico projector or some star trek hologram doohickey, but it won't ever have a bigger LCD screen!
However, we all know absolutes are not absolute, so should Apples top management face some horrible group accident where they all, God forbid, perish and an entirely new group is brought in, and that entirely new group consists of only people that have never heard of Steve Jobs. Then in turn, if this new group releases a 4" iPhone, I will eschew technology all together and move into the woods.