I get your point, but I don't think your analogy works. They still make soccer mom vans because people buy them. There's huge deal make in the market for them. Car makers are playing to the market just the way phone makers do.Weird. When I had the Nexus 5 I remember emailing Google to give us a nexus phablet. Looking at my note 2 I wanted the clean look of the nexus 5 on a note 2 frame.
Now I have my nexus 6 Im wanting to scale back.
The reality is I like a hearty choice market of phones.When it gets saturated one way or another it feels crowded. And I feel like Google and the market is reacting to the market rather than leading. If we react to the sudden love for sports cars and made all cars sports cars then soccer moms and people needing to haul stuff will not be served.
As far as for me, yes I have the nexus 5 and can swap out my sim and be good for a bit. But that would be like saying to someone who want a kb to dig out the old droid (except the nexus 5 is not that obsolete). Yeah we can did up the old droid but it would be nice to see the market not treat small phones like budget phones. Smaller shouldn't equal cheaper.
They're making big phones because people are buying them. There's demand. If enough people who want a small phone refused to buy a larger one, the options in the market would reflect that.