Quite a large portion of the people I know with phablets like the Galaxy Note series are petite women -- people with smaller hands than "the average user". While the line you present is the exact line that Apple kept trotting out while they were in denial about the market demand for large phones, I don't think there is much support for it. Its true that there are usage patterns that work for small phones and not for larger phones, but I don't think the evidence from actual consumer behavior supports the argument that these are as important to what people are looking for in smartphones as the people who keep trotting out the "too big" argument like to believe.