Earlier quoted context omitted.
I still think the iPhone 4 & The iPhone 5 compromises to make the screen bigger, but only by a little. I don't think I could use a 4" device like a Nexus 4 (I have a Nexus S which was a good size), on my commute where I need to hold onto a handle of the train, underground with one hand, smartphone in other.
Some people have larger hands than others. Android gives you the whole range from an Xperia tipo to the Note. On the iPhone, unless you want to compromise performance, you have one phone.
The danger is that changes to screen size aren't always reflected by the software, so you may have a small screen that scales down, or a large screen with wasted real estate. See the host of apps that haven't update for the iPhone 5 screen yet!!!