I see on News.com that Philips have showcased a new flexible LCD display (see below):
The new LCD is on display at the IFA consumer electronics expo in Berlin where Philips are demonstrating a concept PDA, the Readius, which uses flexible LCD technology. The Readius is a pocket-size “e-reader” which rolls out to provide a 5-inch monochrome screen with a resolution of 320 by 240 pixels.
The compact unit can roll up into a 100x60x20mm rectangular prism. Devices like the Readius could create a new wave of phones and PDAâ€™s with large screens and pocket-friendly sizes.
Edited to add:
Thinking further about this – I can see a time in the not-too-distant future when touch-sensitive screens are seperated from the main body of mobile phones and are worn (on the wrist, for example), connected to the body of the phone using Bluetooth. This would allow for larger displays without having to carry a larger pocket-unfriendly phone!