Read my post again and you'll realize you're saying the same thing I am. (including the thought that I can be way more wrong than that )

Phones will definitely be built into other stuffs like clocks, earrings, bracelets, hats, cards... As I mentioned, I have used 2.6" phone without any problem. I was regularly sending texts from the tablet, through the small device. However, when I needed to do something quickly or go somewhere without my bag, I'd take the phone out and do it one-handed.

I believe you don't think people will carry 5" watch on their wrists... I will call 'a phone' the watch, bracelet or whatever has the phone funtionality, not the tablet that will be paired with it.

As I mentioned, I can hardly use a tablet smaller than those 9" or so. Having 5-6" phone that doesn't fit my pocket and can neither replace the tablet is just inconvenient. Neither I can make calls from the 10" tablet. So, phones will eventually become smaller, compact devices, as people buy more tablets (which will fill their current desires about large screens).