So the choice is simple:
If you have the modal number of hands, and want a phone with a big screen for browsing websites in desktop mode, maps and GPS, looking at photos, watching movies etc. and appreciate a decent-sized onscreen keyboard when you do want to type more than a txt or a tweet (maybe calls and texts are some way down your list of priorities) get a big phone and use two hands.
Or, if one-handed operation is important to you (maybe you still use a phone primarily as a phone or for texting) get a phone with a smaller screen.
All Apple have to do is offer people the choice (virtually everything else they do comes in 2 or 3 sizes, so Steve's hardly going to be spinning in his grave).
Stop using the most logical reasoning with these people. it's clear that most of them have developed a very exclusionary viewpoint regarding Apple's products.
its "perfect for them" and they don't want anyone else to have the same experience, unless they are identical to what they like.
As I've said. I would like an iPhone. Just because I ended up going Android for the larger display doesn't mean I am content with Android. Android is cool and all. I'm not unhappy with it. But I have had good luck with other Apple Products in the past and I do like the design and form side of Apple's devices.
But I can't use 4" display. I have tried. it's uncomfortable. My vision isn't the worst in the world. I live without glasses for a considerable amount of things. But I do wear them when I read. on a 4.7" to 5" screen, I can get away with a few minutes of viewing without my glasses and with my phone at a comfortable arms length.
at 4.5" and smaller, I have to bring the phones up to my face.
at 5.2", its unwieldy for me to hold at times.
Offering choice isn't a bad marketting or corporate strategy for anyone. By refusing to offer choice, you are exclusionary and limit your sales. Why only go after one market when there are more markets to also go after.
Apple didn't become the billion dollar company it is today because of Exclusionary business practices that they operate in today. While they always believed in Verticle integration, They made the mint by entering new markets that were untapped.
The iPod broke ground by offering the first truly portable, pocketable and non "geeky" mp3 player that was simple to use. Nobody had quite hit that yet despite efforts and thus they burst into the consumer market by going directly into a category that was basically untapped.
The Same happened for the iphone. The same happened for the iPad. However, Like in previous times, When apple stops going after new markets and starts trying to grow existing markets, they do ok, but they quickly lose their market leader standing for share of sales.
At this point, the iPhone isn't a new market. it's very old. smartphone market has matured a lot since 2007 and the "one size fits all" phone doesn't work anymore when there are hundreds of options that give choice to the consumer.
While its nto going into new markets with a larger screen, it's at least a good way of maintaining growth until they can get a new "game changer". if they can't get a new game changer, than it at least gives them suitable room to grow into markets they currently do not have any affects in.
Either way it will lead to growth. Nobody is saying (at least hopefully nobody is saying) that the 5" iphone would replace the 4" iPhone. that would be IMHO a stupid move by Apple. What they're saying is give the options of the 4" or the 5".