Let's say for a moment that Apple is indeed being 'stubborn' about releasing a larger sized iPhone. They are not obligated in any way, shape or form to cater to things we desire. It is Apple's product to which we either choose to purchase or choose not to purchase. Period. I will never understand how some people (this is not an attack on you) acknowledges the fact that other manufacturers provide larger sized & open-friendly smartphones but instead opt to expend time and energy harping on Apple for not following the crowd. Furthermore, these same people proclaim that having a "choice" is a good thing but then discredits Apple's "choice" to stick to a smaller iPhone.
I'll never understand how some people think that anything listed above is a good business plan. Obviously Apple continues to do well with the way it works, which amazes me day by day, but I can tell you that no other company on the planet would last if they ran things the way Apple runs things.
Choice is always in the customers hands, if someone came into my place of work and asked for a single switch circuit breaker and I say you'll get a double. The customer would walk out of my shop and never come back. Now matter how big, well known, etc. my company was, period. (Of course its a little different as my case may be a necessity, while having a phone is not)
There are other options of course, Android, Windows Phone, Blackberry, but why wouldn't you want those customers to stay? I'm not going to change my product for a wide range of people simply because its not my "choice" as a company to do so. Absurd.
Sure I don't necessarily agree that going bigger or having two different sizes is exactly what Apple needs right now, but there are other things about Apple that I wonder about if they are ever going to change.