5 inches? Really?
I love my S3, but I can't do bigger than this. And 1080p on a 5-inch screen is pointless; you can tell this phone is aimed at the Android core fanboys who automatically translate more as better. Which is sad too, because this is the equivalent of the whole "more megapixels is better" mentality that surrounds less knowledgeable consumers.
Screen tech such as Nokia's ClearBlack, or a 60Hz LCD display (found in the 920) is what would really benefit consumers. Other advancements in the inner tech itself such as how AMOLED brought low-power consumption displays into the mainstream--not merely increasing the pixels--is what is noticeable and practically useful.
And you'll see, just a mere month after fanboys buy the S4, they'll be desperately looking for a 4K display on the 6-inch S5.
Can you please wait until we get a picture or official specs before ripping apart a new phone? Every time a new phone is rumored the owners of the current latest model (or the owners of the competition's lateset model) spout off about the screen being too big... resolution being too high... upgrades being pointless, and the phone being for fanboys etc. Sounding so bitter with nothing but rumors to go off of makes you only sound jealous that the phone you spent your money on isn't the latest and greatest anymore.
Anyway... did you see the other rumor about the S4? It may have a flexible screen.
The size portion is more of a personal knock than it being a negative in general, as I know a lot of folks do like larger screens.
The display portion, however, is a general complaint. At the distance you'll be using your phone, 720p and 1080p are indistinguishable. At the same time, consumers will have to make trade offs because the screen size is not only above average, but because such a high resolution will require more power (see HTC J Butterfly reviews). Samsung will probably offset this by adding a bigger battery that will 1) take longer to charge and 2) be big. All for show and no practical advantage.
As for the rest of your comment, there's really no question this device will carry 1080p. Sure, I don't have a source, but HTC recently released the first 1080p phone in Japan. It only makes sense Samsung will follow suit, for two reasons:
1) Samsung is the "developer" Android OEM. Most of their phones come with unlocked bootloaders, they currently deploy Android updates the fastest, and most if not all their phones come with removable backs and SD card slots; must-haves for geeks and developers in the Android community.
2) Samsung is part of Android, where, unfortunately, OEMs have the liberty to try and fail at certain things. They usually do this by implementing technology that's not ready, regardless of the customer experience (see first LTE devices).
This disregard of the customer experience, plus their appeal to the geek/dev Android community pretty much seals the deal.
P.S. That rumor started before the S3 even came out. In fact, rumor was that the S3 would have it, so it's not new.
How is larger screen with more pixels the same as "megapixel" war of compact cameras? When I watch movies or play games on a phone or use it for browsing the internet or GPS, or viewing pics, I will bet people will instantly be able to see why a 5 inch 1080P smartphone is actually an improvement over a tiny 4 inch screen of certain competitors. Samsung is actually extremely smart since they realized a LOT of consumers want something that is not quite as large as a tablet but still large enough to improve your media consumption tremendously. If it wasn't for Android, Apple would still be selling us 3.5-3.7 inch iPhone 5s and telling us how awesome they are....
You're the exact uniformed consumer Samsung hopes to sell this phone to.
Not only you can't really appreciate both the increase in pixel density and resolution that 1080p brings in a 5-inch device, but at the distance you'll be holding such device the difference will simply not be seen unless you hold it a few inches from your face.
The reason why this is analogous to the "more megapixels is better" mentality is because, just like your comment showed us, you think higher is better. When it isn't.
Cameras are not only about megapixels. That's why the HTC Titan II (a 16 Megapixel phone) takes garbage photos when compared to the iPhone 5 (who has a 8 Megapixel camera). There are other factors that qualify a camera as better, just like there are other factors beyond resolution that make a display better.