This race to thin phones with unusable battery life reminds me to the race to more and more mega pixels in digital cameras with unusable low exposition quality some years ago. It's just about the buzz, it just hinders the technology in order to be able to tell a more catchy number to consumers.
I would happily go with a 33% thicker iPhone with great battery life and a headphone jack and I doubt that most of the people would notice the difference in size.