It looks nice, but I do wonder if the screen will make the phone too big.
I for one have no problem with the idea that the screen on a phone might actually be large enough to be readable without glasses. Now if I were still in my 20's with 20:10 eyesight the smaller phone might be desireable but I'm not in my 20's anymore so a larger, higher resolution screen is preferred. The screen on my iPhone 3G is 3x2 or 3.61 diagonal so an increase from 3.61 to 4.3, though not huge, might make all the difference to someone like me.
Also, if the display is a tad wider, that is greater than 2 inches, it should make it easier to thumb type in portrait instead of switching to landscape.
If I were designing a phone I'd start with the iPhone and make it about 0.2 inches wider, 0.3 inches longer, and 0.1 inches thicker. Making it longer and wider would permit a larger display and with a smaller bezel area the display could be a good bit larger. Making the phone a tad thicker would allow for a much larger battery for much greater useful operating time. Lastly, in addition to a physically larger display I'd want the resolution to be MUCH higher. Figure a 4.5 inch display with a resolution of 1600x960...
Brian