I just don't get why so many people are craving to get a huge 4,5" screen and bigger resolution. It almost seems the circus that has been going on forever around megapixels in the field of photography is now arriving to phones. If Apple makes the screen bigger I'm pretty sure they will keep the same 960×640 resolution and just make pixels little bigger. I own a second generation iPod Touch and I'm looking forwards to buy the next iPhone since I finally have the money (and a good reason) to buy one. So for me moving from iPod Touch 640x480 resolution close to the current iPhone 4 resolution will be a huge improvement anyway so I can't really complain. It feels weird that people think they are going to see difference on the screen if Apple makes pixels larger and not to add more pixels in order to keep the "Retina illusion". Apple could easily take few steps "backwards" in screen pixels and people would still not see the difference. I'm also sure that no one who creates apps for us do love to re-do their apps for a new resolution, so I'm pretty sure Apple don't want to cause more troubles to the developers by introducing a new pixel sizes in iPhones.
I personally do hope that Apple won't make an iPhone 5 a huge screen phone. I think the current screen size is close to perfect, you could maybe add about 0,5cm extra to it and I'm sure even this kind of small extra size area would make a big difference. I just checked from my iPod Touch and I think you can't really go bigger screen size what is already is because if you go, then you have to stretch your fingers to reach the top of the screen. Now you can easily reach every corner on the screen so why to fix something that works so well? 4" screen might sound cool but I don't personally believe it will do any favors to the usability than well being a huge screen. I rather have something like a 3,7" screen which is little bigger than the current one, A5, more ram and 64GB option (128GB would be a dream come true since the apps are getting more and more heavier and they also take more space from your iPhone/iPod Touch). But this is just what I think...
I personally do hope that Apple won't make an iPhone 5 a huge screen phone. I think the current screen size is close to perfect, you could maybe add about 0,5cm extra to it and I'm sure even this kind of small extra size area would make a big difference. I just checked from my iPod Touch and I think you can't really go bigger screen size what is already is because if you go, then you have to stretch your fingers to reach the top of the screen. Now you can easily reach every corner on the screen so why to fix something that works so well? 4" screen might sound cool but I don't personally believe it will do any favors to the usability than well being a huge screen. I rather have something like a 3,7" screen which is little bigger than the current one, A5, more ram and 64GB option (128GB would be a dream come true since the apps are getting more and more heavier and they also take more space from your iPhone/iPod Touch). But this is just what I think...