WRONG. Most would have to be black boxed and would still be the same size as they are now. So your new screen isn't any larger anyway. So whats the point.
It is true that some apps, like full screen OpenGL games, may need black-boxing if the developer has hard-coded the screen height or aspect ratio during development.
But most Cocoa Touch apps should work without modification if they have been developed correctly.
The only instance where you'd get issues in a Cocoa Touch app is where controls that are supposed to be on the bottom of the screen have been laid out using fixed vertical coordinates. But generally, this shouldn't happen if the developer has tested the app correctly, e.g. by testing with the Simulator's "Toggle In-call Status Bar" option.
I'm sure there will of course be apps that have glitches and need to be bug-fixed to handle variable screen height, but the majority should be fine without modification.
This taller but not wider screen idea is just plain STUPID. And will not happen.
I disagree. As a developer, I think its actually a clever solution.