Apple needs to take this opportunity with the upcoming iP5 to remain competitive in the smartphone market..
The iPhone 5 is already out you know. iPhone (1), iPhone 3G (2), iPhone 3GS (3), iPhone 4 (4), iPhone 4S (5) which leaves the next iPhone to be the sixth!
To comment on the rumor, I am very satisfied with the display on my iPhone 4, and I would hate to carry a phone any larger than the current one around in my pocket.