i never really noticed this but when i went to look at some new phones yesterday it dawned on em that the iphones screen is tiny compared to most of the competition
Originally 3.5" was a large display.
However, sadly, Apple is behind the times and resistant to change. Even considering the rumor they may increase the size. It will still be on the small size.
Apple claims they innovate but actually they are a conservative company. Since the average high end Android is 4.3" Apple will refuse to use that size since they cannot claim exclusivity. Therefore they will likely cap the size at only 4.0"