As someone who values clothing for utility more than fashion, the happiest recent discovery I've made is that the Carhartt pants I wear all have a pocket that perfectly fits my cell phone, an iPhone 4S.*
I drop it in there upside-down, so that my thumb automatically hits the "home" button as I pull it out, making it a second quicker to get to whatever app I need to get to. The odd placement of the pocket somehow never interferes with my leg while sitting down, nor does it place the phone in a dangerous position if I bump into something. Best of all, it stays in there snugly, even if I'm going up a ladder or jogging down the block.
If I had the option for a larger phone, I wouldn't take it. I've never used an iPhone 5, but the 4S is the perfect size for me, and I like being able to carry it in a dedicated pocket on an out-of-the-way spot on my leg.
So I'm a bit surprised to see Samsung's Galaxy Note II is gaining any traction at all, with its massive 5.5" screen, but there's clearly a subset of people who want huge phones.
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