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I don't see apple readjusting app sizing and scale to fit in a physically larger screen to optically be consistent with the 3.5" I see them merely doing it to make the phone display physically larger.
In that case I dont want a 4" display. I'm only in support of a larger phone if it translates to a tangible improvement in what can be done on the device. A bigger screen that is just the same apps 20% larger doesn't interest me at all.
Frankly stay at 3.5" and reduce the size of the phone housing instead.
 
A four inch screen will not fit on the current iPhone. And why the heck would Apple make the screen from edge to edge. It will be almost impossible to hold and use properly and some cases need a little bit of the space on the sides of the screen to support itself .The only option is to make the phone bigger.

Apple isn't going to change their display technology only 1 year into their 326ppi retina display. Maybe later, but its too early right now.

iOS is optimized really well for a 3.5" screen. Theres not that much point changing it.
 
Good point, but that was the logic behind iPad 2 getting a Retina display. We thought the same thing when we were speculating about the iPad 2.

The difference being that the iPad never had retina display to begin ith, and the logistics of putting into an 11" screen are a lot different than putting it into a 3.5 or 4" one. You'd basically be carrying around an 11" screen with the resolution of a 27" iMac display.
 
If that's the actual size difference in your drawing ... it's a huge difference!!! My wife is up next for an upgrade. She is gonna love the larger screen size!!! And I will be jealous :(
 
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