Will that be the new Apple slogan? "Buy our phone with a small screen and hold it closer to your eyes."
Problem? Apple and their partners are in the business of selling things. They *want* people to buy new cases and accessories.
I don't get why people want such huge screens. How far away do you hold your phone from your face? 3.5" is reasonable, although 4" would also be good.
The accessories are made by 3rd party manufacturers. If you change your design, less products work with the current iPhone, making it less desirable. Look at the Android phones. They don't work with any accessories except generic MP3 player things.
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The next iPhone needs a bigger screen, the 3.5" is just too small now.
"Now"? Why does everyone suddenly seem to need a bigger screen?