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Wirelessly posted (Mozilla/5.0 (iPod; U; CPU iPhone OS 4_2_1 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8C148 Safari/6533.18.5)

Exactly, it will tho off the resolution.
 
Wirelessly posted (Mozilla/5.0 (iPod; U; CPU iPhone OS 4_2_1 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8C148 Safari/6533.18.5)

It is true.
 
So it will take the removal of the home button to give us a 4" display. Who knows, we might lose one button and gain a whole bunch more with a keyboard added to the iPhone 5?
 
Here's a quick mockup I did.
 

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