But all of this screen stuff is seriously getting more wishful in my opinions. There is still no concrete reason as to why Apple should increase the physical screen size to 3.83" other than that you want them to.
Nah, your 4" 1152x640 with no home button is really the wishful thinking. Misguided wishful thinking. You're asking Apple to create a 3rd aspect ratio and 3rd resolution with a totally different input method, for a really marginal screen resolution increase, and one that would have to accomodate new virtual buttons.
Quite frankly there is no real justification for it, and it would be a step in the wrong direction too. They'll just keep the resolution the same. If it's 960x640 at 3.5", then so be it. I'm just pointing out that with an increase in size of the phone to 118x61 mm, they could put in a 3.83" screen at the same rez, and it would be nicer to look at, without making it unwieldy like some of the Android phones are now. Furthermore, that size increase would bring it to the range of
pre-existing iPhones. However, if they don't and just leave it at 3.5", no worries.
Hell, a 3.5" screen with a home button is still more useful than a 4" screen with no home button. But a 3.8" (my preference) to 4" screen with a home button is potentially even better.
P.S. Since you commented on it, yes I have taken apart an iPhone before. I did so with the 3G. No, you couldn't put a 3.8" screen in the 3G with the 3G design, but that's the whole point of updating the design of course.
BTW, your arguments sound a lot like those from people who claimed Apple wouldn't release an 11" MacBook Pro because one couldn't do it without compromising specific features such as keyboard size, etc. Then, Apple released one, except they called it the Air, complete with a full-sized keyboard.