We could use robotic pixels, to flip around when you need them on the edges (it would also mean you could embed a camera in the middle of a screen for better eye-communication)
Anyway, I think it would be a lot more interesting to use that bigger form factor to give a phone amazing battery life or to make it super rugged.
Though CNet review sounded gloomy, as if it were "here's what would have been a really nice phone in 2008" but if that's what I have to give up for a small phone that can run a few important apps I'm happy.
Looks like it's already available but maybe it's just not worth the price for what you get and I should get a bigger purse, and get really good at holding a phone with one hand while pointing with the other. http://www.mobilekiwi.co.nz/android/item/1694-samsung-galaxy...
He quotes from another source: ""Apple has proven quite conclusively that tens of millions of people are happy to have a device they can wrap their hands around. It doesn't mean they don't want powerful processors or high megapixel cameras."
http://store.storeimages.cdn-apple.com/2949/as-images.apple....
From the iPod Nano to iPhone 4S to iPhone 5 to iPad Mini to iPad to 11" Air to 13" Air to 21" iMac to 27" iMac, doesn't it seem like we're headed to a world where a computer is a thin display panel of arbitrary size with some electronics hidden behind it? And it won't make sense to think of them all as fundamentally different products any more than we think of, say, small pads of paper and large pads of paper as fundamentally different products.
The difference between the Apple product line and the (Android) phone marketplace is that Apple hasn't stopped making the iPod Nano, likewise the paper industry didn't stop making small pads of paper when Trapper Keepers became more popular.