I will likely end up upgrading my iphone 4 to a 5 instead of a 6 if the rumoured size increase happens. The only reason I still use an iphone is the smaller screen size. I would bet that Steve Jobs had the nous to make sure that the iphone comfortably fits in the front pocket of a pair of jeans.
The rumor sites have them bringing out two models - one a bit bigger and one much bigger. If anyone brings out an android nano I'll defect immediately (having been on iphone since day 1).
The Droid Razr M is about the same size, at 4.82 x 2.40 x .33 inches[1]. It's only .09 inches wider, and .03 inches deeper than The 5s, and it is actually .05 inches shorter[2]. I'm not sure if you'd still find that too big though.
Really looking for something with a hi-res screen, apple-speed touch latency, maximum but preferably smaller footprint than an iphone 4, and at least as thin as an iphone 5. This should be doable in 2014 and I think would be distinct enough without being ridiculously niche to have a reasonable market segment.
You aren't likely to get apple-speed touch latency outside of apple. They have worked much harder on this than everyone else and do a much better job of it. Sadly for you, I don't see them releasing something that small again. The 4S is still a decent phone, but you might have to settle for the 5 sized phones. Unlikely they ever release something smaller at this point.
One of the reasons I didn't want any smart phone was the size (I had a small flip phone from Virgin Mobile); but now I'm used to my iPhone in a Book Book.
On the other hand, my wife often has no pockets, and never puts her phone in one. Instead it goes in a purse. For her, and I expect many women, the only thing that matters if it is comfortable to hold and use not how it gets stored between use.
I was ready to buy a nexus 5 which is much smaller until I tried my friend's one - it feels like I tried to stuff a shoe in there by comparison. Having bought on spec, they agree that it is disappointingly huge and wish they went for an iphone.
the old iPhone screens are too small. current isn't bad at all. perhaps a bit smaller than ideal, but not really "too small" (at least it isn't too small for tens of millions of people)
So you haven't tried it. Good deal. I wear regular fit pants and have absolutely no problem putting the phone in my pocket with plenty of room to wear.