You seem to be arguing two different points in one post. Is the screen too big for you, or the phone?
I happen to think the EVO/HD2 form factor is quite simply a smarter, more efficient use of space and I would welcome the huge 0.6" jump in screen size. (Then again, I own and love a 12.1" "netbook" too). The best part is the phone itself is only marginally larger, so the pocket-ability will not suffer. It is a better screen-to-chassis ratio, and a better design IMHO.
I would love to step up from my feature phone Dare to Android, but more and more I am feeling like I will wait for a 4.3" screen running Android on Verizon. Whether that be the Moto Shadow, HTC Vulture, or something else I don't know. I have played with the Droid several times and while I thought going from my 3.1" Dare to the 3.7" Droid would give me the "WOW" impression, in reality I came away with a luke-warm "that's OK" feeling. If rumors of the Shadow heat up for this summer (my NE2 is up mid-June) I might sit back and pass on the Incredible. My girlfriend desperately needs a new phone so I might get plenty of hands-on time with the Incredible soon anyways.