I have to laugh...
A WHOLE extra 0.8" larger. OMG
A whole extra 0.8" is very significant. It means a display nearly 50% larger, 44% to be exact.
Just because SJ says that 3.5 is the perfect size doesn’t make it so. People also once said nobody needs cell phones then the same about smartphones.
SJ never said 3.5 is the perfect size. Somewhat like "you're holding it wrong" it's a meme made somewhere on the internet that spread over.
Instead he disparaged the large phone calling them "Hummer" phones. If you know anything about Jobs' history, if he really criticizes something there's a good chance he's working on making something like it behind the scene, unless it's netbook, and no, the Macbook Air isn't a netbook.
Screen size sounds just about right. And for all you haters, once you use a phone with a reasonable screen size, you can never go back to looking at a tiny low-resolution screen.
I use a 4.7" phone and a 3.8" one daily and much prefer the 3.8" size. If anything I'd like the old 3.5" size to stay, so much more convenient for one hand usage, especially as a camera or an MP3 player.