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i am content with the next iphone, though.

bigger screen = harder you use with one hand. i've used a nexus one. it's hard to reach the very top and/or bottom depending on where you hold the phone. the size of the iphone screen is perfect for one handed use.
 
It wouldn't be harder to use. Software already knows to ignore touches at the very most edges of the screen because the iPhone OS software already knows that touches at the very most edges are from where your fingers are holding the phone.

It displays things on it perfectly fine and you could still use that space for gesturing. It just knows to ignore your finger tips when they've been stationary on that spot.

If your finger ends up there as part of a long gesture, it won't ignore it. It just ignores it if you finger is stationary somewhere at the edge of the screen. This already done for most of the software on the iphone. Try it out.
 
I was shocked that it may have a smaller screen

I have been Apple loyal since the 80's

If they do not deliver the goods this Summer

Then EVO 4G here I come!
 
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