Android is more than one phone and hardware manufacturer. There are a ton of different Android phones out there. Apple has one phone essentially. So all of this Android is caught up or has surpassed Apple is nonsense the way I look at it. You can also look at it this way, Google makes one flagship Nexus device a year. Now take the numbers that phone brings in and compare it to the iPhone. It pales in comparison. (And I am in no way bashing it, I love that phone.) I can assure you Apple is not going to sit on their hands and become RIM anytime soon. The people that work there are on a completely different level than those at RIM. I wish I could explain that better but I can't.
And back to the screen size effecting sales, won't happen and I'm in the camp hoping for a larger screen someday.