In all frankness, I think this is the legandary "if people wanted a faster horse..." statement of Henry Ford -- consumers don't always know what they want, and I know quite a few who couldn't confidently answer the question "why did you buy a 6,5" iPhone?" with anything else but "I have used iPhone all my life and this is the size they sell", meaning the consumer doesn't choose much, the choice is to buy a newer iPhone. The simplified argument that goes along "phones are getting larger because consumers want larger phones" is indeed only that -- a very simplified way to look at it. There's much more going on there.
It's very similar to smart TVs. Yes, most people do prefer smart TVs, but vendors use it very successfully to sell inferior displays (poor color, poor contrast etc), to compensate and to pull more selling margin, since that's how the consumer functions (being utterly unable to quantify display quality for an uncalibrated TV). Anyway, I am digressing -- the point of my comparison is that it's complicated and not nearly as simple as "consumers want larger phones / TVs with slow menus and shitty picture as long as there's Netflix in there".
It's very similar to smart TVs. Yes, most people do prefer smart TVs, but vendors use it very successfully to sell inferior displays (poor color, poor contrast etc), to compensate and to pull more selling margin, since that's how the consumer functions (being utterly unable to quantify display quality for an uncalibrated TV). Anyway, I am digressing -- the point of my comparison is that it's complicated and not nearly as simple as "consumers want larger phones / TVs with slow menus and shitty picture as long as there's Netflix in there".