>“When we sat down last November (to work on iOS 7), we understood that people had already become comfortable with touching glass, they didn’t need physical buttons, they understood the benefits,” says Ive
Along with Federighi's comments. I still remember reading it at the time saddens me. They then spend the next three version of iOS trying to walk back all these flat, glass, no button decisions. Another 6 years before they rework all icons to the old circular proportion.
One thing to nitpick though was that Steve was well aware of the iPhone Plus or iPhone Phablet market condition. As it was in shown in the one of the court case email. And he was willing to go with it so he is not too stubborn about the size. / width.
I also think it was the turning point of his philosophy. Steve always wanted the iPhone to be an "smart" appliance. Hence it could be small, and used one handed. It was first and foremost an appliance, easy to use devices, Apps on top are something extra. Except the model has shifted to your Phone being the computer. And Apple no longer has his intuition to guide them.