Totally agree. I bought a Galaxy S3 recently and my only major regret is that the thing is freakin' huge. I don't understand at all why this is desirable. Even in the rare instance where I want to watch a video on my phone, the slightly large screen doesn't really noticeably improve the experience.
How about someone invents a flip-out screen already? Then I can have a slim touch-phone and 1080p screen for those rare times I want to use a browser when I'm away from my laptop.
We could use robotic pixels, to flip around when you need them on the edges (it would also mean you could embed a camera in the middle of a screen for better eye-communication)