Fair enough; I got 1141 by multiplying 3.5" x 326 ppi. But either way, my point is the same: to make a bigger screen, either the resolution drops or the number of pixels increases.
Several people have pointed out that a 3.7" screen would have a resolution over 300 ppi (which is what Steve Jobs claimed was the magical "retina" threshold). This is true, but it still represents a drop in the display resolution of the iPhone. I maintain that this is unlikely. The Retina Display has been out for over a year now, and while few if any other manufacturers have caught up with it, you can be sure they're trying. Is Apple going to lend them all a hand by not only not increasing the resolution of the next iPhone but actually decreasing it?
Look, I'd love a bigger iPhone screen too. I just don't see it happening.