The few people who have bought it have quickly gotten over the embarrassment that prevents the rest of us from buying it, and love the Note. And they claim they can never go back.
I believe that given that 95%+ of what we use a smart phone for these days benefits from a larger screen with higher resolution [not to mention increased input choices], moving to the largest screen possible [while maintaining a 24hr battery cycle, and being able to put it in a pocket] is inevitable.
Low budget users will settle for smaller phones with same features. High budget users will go for the largest phone they can hold.
All this changes with Google Glass, or a holographic projection system :)