You think that people want a device with nearly 50% more screen area because it's a "bigger number"? That's delusional.
It's 2013, most folks who are buying smartphones are not buying their first smartphone ever, they know what they want, many of them are fairly savvy at this point, and people want larger phones. I have a lot of friends who are extremely technically savvy and are not easily subject to marketing influence, they buy phones based on lots of research and recommendations from friends. Almost universally they are buying 4.7" screen phones, because there are many exemplary models in that form factor such as the HTC One or the Moto X which are excellent phones.
It's 2013, most folks who are buying smartphones are not buying their first smartphone ever, they know what they want, many of them are fairly savvy at this point, and people want larger phones. I have a lot of friends who are extremely technically savvy and are not easily subject to marketing influence, they buy phones based on lots of research and recommendations from friends. Almost universally they are buying 4.7" screen phones, because there are many exemplary models in that form factor such as the HTC One or the Moto X which are excellent phones.