You're hearing what you want to hear.
And with all due respect your arguments are the ones that are silly. Several of who SELL PHONES for a living (and therefore talk to a lot of customers) have explained to you again and again what we hear from customers but you dont want to hear it because it does not fit with your worldview. That is your choice of course but it wont change anything.
Customers want bigger phones, it's as simple as that. For some it is because phones are being used more and more for media, for others it is because they are easier to type accurately on now that physical keyboards are a niche, and for some it boils down to "bigger is better" for no logical reason at all.
Big screened phones sell, even at higher prices and specs. Small screened ones with high specs (and the corresponding higher price) simply dont sell as well. I'm sorry but that is just how it is. You can twist and argue that any way you like but it does not change that fact.