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I think that the overall phone size is rather constant, but the bezel on the side of the screen are constantly shrinking, allowing larger screens without transforming the phone into a tablet (yet).

This is correct, here are the physical measurements:

Nexus 4: 133.9 x 68.7 x 9.1 mm

Nexus 5: 137.84 x 69.17 x 8.59 mm

That said, I still find it frustrating -- the Nexus 4 screen is already too large for me to comfortably reach all parts with one hand.

I believe the device itself is smaller, they've just thinned the bezel and made the screen use the entire front surface of the device.

I believe it's around 7mm x 4mm larger. Not really very significant, but still quite large.

Looks like the phone body is 2mm bigger in width and height than the Galaxy Nexus, so pretty neglible difference really.