A user over on The Verge forums did an interesting mock-up of the 4-inch iPhone. The shorter side’s size remains the same, while the longer side is increased (640-by-1152 pixels). Go over to The Verge for a few more screenshots.
What do you think? I especially like that extra row of apps on the home screen and the ability to better play widescreen videos. Current apps would need a re-write to take advantage of the extra pixels or else letterboxing would occur, so it is a bit far-fetched.
It would also allow current docking stations to work; although, the 30-pin connector is rumored to be a goner.