I personally dont mind the 3.5 inch scree on the iPhone. I got small hands though. I would have to carry around the Galaxy Note for a couple months to see if I could adjust. I may like carrying around a huge phone or may not. At times I dont even like having an iPhone in my pocket since it feels like a small brick, kind of miss my old school flip phone at times. haha
I think a 4 inch screen would be ideal, but I also believe it would be awesome if Apple had a 3.5, 4.0 and a 4.5 inch phone. IMO that covers all the bases and I am 95% certain they would sell all of them really well. I ain't calling the shots though
Hopefully if the next one is a shade over 4 inches they keep the 3.5 model as well (updated version) we'll see soon. Time to stretch those legs. But no the increasing sizes dont concern me, I figure they will have a few that will go 5.5 inches maybe even hit 6 before they pretty much settle between 4 and 4.5 for most of them. Nothing wrong with seeing what the market accepts and rejects.