I've seen plenty of rumors of a 4" screen. Even some screenshots of possible variations that remove the home button and has 5 apps in a row instead of 4 with the new screen size.
Thoughts, rumors, wishes?
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I will stay away from predictions and rumors and just go with my wishes (sorta).
Not to beat a dead horse, but I really, really want a larger screen. Unfortunately, I doubt Apple will go as large as I would like. 4" seems to be the popular figure, probably because anything bigger would probably cause the iPhone to get larger than Apple would want. Personally, I would love a 4.5", or even larger screen.
If the screen size doesn't change, I would probably have a hard time staying with the iPhone. Although this will depend on what Android and Windows phones look like at the time.
4G/LTE or whatever would be nice as well. Everything else is just gravy.
I have actually considered dumping my iPhone and just going with a basic pay-as-you-go "feature" phone with the idea that I would carry around my iPad 2 all the time. However, the iPad is just large enough that this wouldn't be convenient. That being said, if Apple came out with a 7" or smaller iPad, I would definitely consider that idea again.
-Keith
We're likely 6-9 months from the next iPhone, so not too early at all. The rumors will really get going with the launch of the iPad 3. :)

Not to beat a dead horse, but I really, really want a larger screen. Unfortunately, I doubt Apple will go as large as I would like. 4" seems to be the popular figure, probably because anything bigger would probably cause the iPhone to get larger than Apple would want. Personally, I would love a 4.5", or even larger screen.
There's an interesting argument that says Android phones will get smaller as 4G chips get more efficient.
http://daringfireball.net/2012/01/why_are_android_phones_bigger
I just want something awesome to buy, and Siri, when my 2 yr is up :)

...There's an interesting argument that says Android phones will get smaller as 4G chips get more efficient.
http://daringfireball.net/2012/01/why_are_android_phones_bigger...
I suppose Android phones going larger because of the 1st gen 4G chipsets is a possibility however the first 4"+ screen Android phones were available before 4G was available and they had the same feature set as their smaller screen competitors at the time.
-Keith
That's the immediate weakness with that article: I thought there were Android phones with larger (but lower res) screens before the iPhone 4.
But there seems to be a compelling argument that >4.5" correlates strongly to 4G.