And then there's this ad from the original iPhone 5 release: https://www.youtube.com/watch?v=EY4c2mh15Yk
No iPhone 6 option at 4" is in direct contradiction to what they said before. It's a reason the Apple Watch is released in two different faces, people are different!
I'm starting to think this was a move for Apple to not lose Asia as small phones are really out of style there. Apple lives in fear of only becoming an "American" company.
http://www.phonearena.com/phones/size#/phones/size/Apple-iPh...
I wouldn't describe the change as "negligible." It actually looks quite a bit larger than the 5S and MUCH larger than the 4.
PS - I actually like large phones. But I also have big hands. I just disagree with your characterisation of it.
As a phone, messenger, and audio player, the main functions for me, I cannot see any benefit.
As a game console, gps/maps client, e-mail client I can see some marginal benefits from the larger screen, but not to justify the increased bulkiness.
I usually do not use my phone for web browsing, as a video player and e-book reader, due to the small screen, and I cannot see the .7 increase being big enough to change that.
I'd be quite happy with an iPhone 5 form factor Android device.