I think much depends your own personal use scenario. The mobile phone aspect of the iPhone justified the purchase of my 3GS in terms of cost. However the making and receiving of actual phone calls represents the least usage that it gets. Call me Norman No Mates I guess!

I spend much more time on Web browsing, emailing, maps, gps, music player for ogg flac etc., video player, umpteen databases, todos, reference source for medical information, dictionaries, ebooks, shopping trolley, assorted note taking, and so on and so on.

Nearly all of which would benefit greatly from a larger 5” screen. So for me, since it is also a mobile phone, it would be worth the extra bulk as an everyday carry. So in that sense I agree with the OP.

Although it is more what I had hoped that the N800 would evolve into rather than what the N900 could be. But then the appeal of the n900 has completely passed me by.

At the best of times, I have no interest in physical keyboards and all the more so now that I have Shapewriter on the iPhone.

All of which is just my opinion based on my experience but each to his own.