All you small phone acolytes need to go away and stop complaining. Either you get what Apple is offering or you don't. Go seek your 4" phone elsewhere. There are other non-iPhone options that fit the bill for you.
Quite frankly it's getting annoying reading thread after thread about this. If there was a substantial demand (no you don't represent the populous sorry!) for a 4" iPhone Apple would be on it. Unless of course you think you know more than Apple.
Alright everyone, pack up your things. Apple is perfect, and there's no room for improvement anywhere.