It is possible. The Moto X did it last year.I would agree they look better but it may not have been physically possible to build them like that. Creating that design on your computer and physically fitting all the components in are very different things.
Edit: I actually on partially agree, top bit looks better. Bottom bit with the home button looks silly.
Lol. The bezels are terrible, and dated.
The next two redesigns of the iphone (7 & 8) will each most likely start trimming the device size down. Apple cannot really go any thinner than they are at right now. A big part of their PR is to make something thinner and smaller, so this is where things will be headed in the future.
Considering how invested they now are in fingerprint readers, that is a huge limiting factor. Not to mention how some space on the side of he screens are necessary for landscape gaming ergonomics. I think the current design is perfect. Moreover, it's iconic.