Thing is that phones are a lot different than they used to be (duh), cellphones used to be very limited devices which were really only capable of doing a few things: call, txt, email (sorta), some video but not really, and maybe some crappy games. But now phones represent a whole-lot more for a lot of people, there almost mini computers. We use them for browsing the web, watching videos, playing console level games, reading books and tons of other visual centric tasks, as a result we've realized that it is easier and more enjoyable to do these things on phones with larger screens and that is where the market has trended (the GS3 being one example). Now I will agree that there is a size at which a smartphone screen becomes too large to be used effectively (5" IMO), however there are plenty of other sizes that Apple could opt for that would vastly improve the user experience (4.3" would be good) without hindering the use of the device.