iPhones are 3.5 inch too but most of the user seems don't bother with the size. At least it will have high pixel density and small footprint. Big screen Android (above 4 inch) are great for game and browsing but its hard to get in and out of pocket, especially tight jeans. This phone will appeal to some user, including me, as a second phone it will be good alongside my Razr

Most important thing, please do test the battery life of this phone. Nothing fancy, just do whatever you do normally and post it here (and details such as 2G or 3G network, WiFi on for how long, how many hours on call or SMS, watching video etc.), if its good then I would probably buy it