I agree. Excluding the die-hard Apple users, almost every iPhone user I know of has already switched to Android devices such as the Galaxy S3, HTC One X, etc. Others want to try an Android phone because they want a larger screen - something that Apple doesn't offer.
This all sounds a little too familiar. It reminds me about the time people were screaming for Apple to launch a "netbook." Even though this segment was massively popular, Apple's response was: "it's a fad."
The thing about Apple is that they continue to do things on their own terms. They like to take their time on things. People on the other hand are going to turn to the competition to get the devices they want. It's unfortunate for Apple, as they continue to miss out on this golden period when demand for these devices is at their highest. I for one, would LOVE to have a wider and larger screen iPhone, but currently, such a product does not exist.
Once again, just like the MBA 11" and the smaller sized tablet, Apple will be late to the game. I expect an entire year of the iPhone 5S, before they launch their larger/wider screen iPhone 6 and by than will any of us really care?