I remember when the first Android phones with 4-inch screens hit the market, I saw someone comment online that if a 4-inch screen was better Apple would have figured that out during R&D for the iPhone and made the original iPhone 4 inches.
I still think the original iPhone was the best size. I use the iPhone mini today, and I wouldn't mind it being a bit smaller still.
It really lends itself to the phone being a tool, rather than a device for endless entertainment. It also suggests it is an accessory, with the desktop/laptop being the home base, rather than the phone being a primary device.
It really bothers me that the phone is now at the center of the ecosystem. It seems like the hub should be something that isn't as vulnerable (to theft, loss, or drops) as a phone.
There's a pretty common use case that's basically this: get in the car, plug in the phone, and drop it in a cup holder with the charging port pointing up and all the antennas that would point skyward during handheld use are now pointing at the ground.