I agree with you 100% until I used a note 2. I think that is a device that really changes the way you use your phone. Obviously a stylus has a lot to do with this, but the major reason is the size. I really do not need to power on my laptop to do extensive internet browsing, and I get the same battery life as my macbook air haha (screen time)
Ok - so for you, that changed things. I don't want a phone that big. I've picked them up and used them numerous times - every now and again I'll get the idea a Note would be cool - then I pick it up in a store and think I'd never want to take this around with me all the time....
For me, my phones work well for everything I do. I'd argue your preferences didn't change much - you wanted to be able to browse extensively - you just hadn't found the phone that did that really well until the Note. I have my laptop bag with me every day going to and from work so carrying my iPad mini isn't an issue and it's much better for browsing for me than my phones or a note would be. Otherwise, I have my phones and they are plenty serviceable.
I still say screen size is a preference and not an advancement - bigger does not mean better in every case. But I recognize that for some (like yourself), the bigger screen allows you to unlock the uses you want in a smartphone. Which is why I hope Apple DOES add both the 5" iPhone and the cheaper iPhone. More choices will only serve to increase their marketshare.