That's not what he's arguing. I can reach the pedals of my car with the seat all the way back, too, but I'll probably plow into someone as a result.
He's arguing that it's not comfortable to do so, and I agree. Stretching my thumb across the iPhone screen (top-left / top right) is as close to uncomfortable as I'd like to be. When my thumb is over there, the phone arches forward because of the position of my index finger, almost moving the phone out of my hand. Any larger of a screen and it'll go flying.
Whether or not Apple decided on the original screen size because of this, it was a good decision to not increase the size of the screen with the 4S.