I agree. I think people browse carrier stores, see those large screens on other phones, and buy one of those. I'd be much more likely to upgrade in October to the next iPhone if it had a 4.3" or 4.5" screen.
I don't think it's the screen size as much as it is the "newest model" factor. Most people in the phone store, whatever the time of year, are those whose contracts are up
now. Due to the normal Apple product cycle, the people in the phone stores in October and November are more likely to currently own an iPhone. They'll see a brand-new iPhone vs. "yesterday's" Samsung and HTC.
In the end, when a new model comes out, people decide whether,
on the whole, it suits their needs. Personally? I wouldn't convert to a different OS simply for a larger screen - the pain of the learning curve, the pain of conversions and migration
No, a bigger screen isn't enough (and I like "smaller" in my pocket anyway). Of course, that's one data point, and only my clones and I will behave as I do.

Besides, since I have a 2.5 year-old 4, switching to a 5S
is a move to a bigger screen.
There are, of course, people for whom screen size is the tipping point. There's nothing wrong with that. Considering Apple's historic retention rates (and the amount of market research the company does), I suspect big-screen switchers fall within the statistical norm for platform-switchers, or are so close to the norm that it's not necessary to rush an all-new form factor out one year after the last all-new form factor.
Come September 12, we'll see if the next iPhone has a sufficiently compelling
package of features to keep most Apple fans in the fold, and attract new ones.