Take a look at the new Motorola Razr M dimensions vs. the Incredible 4G dimensions.
Razr M; 4.82 x 2.39 x .33 (in.)
Inc 4G; 4.82 x 2.40 x .46 (in.)
Apparently enough folks like that size phone that Moto saw fit to put out a new model with those dimensions.
Is the era of phones that are too wide to hold with one hand over?