It was almost exactly two years ago when I was debating this very same question. It was mid summer of 2010 and the Droid X was just about to be released. Compared to pretty-much every other cell phone on the market, it was huge. I (being a specs guy) was very attracted by the numbers on it. There simply wasn't anything else out there that compared to it in terms of features and performance. So even though I felt it was way too big to carry, there I was... standing in line for it on it's release day in July. Needless to say, I got used to the size fairly quickly. Now when I look at an iphone 4 it looks tiny to me.
Here I am two years later on the eve of the Samsung Galaxy S3 release. Same story. The specs, features and performance... (continues)
and it sells, and people like it. I think we're pushing the envelope, now that we have tablets for comparison. At a certain point, the phone will become a tablet. Imagine holding an iPad to your face to make a call. That's too big.