While I don’t disagree with most of what you mention, I do have to ask on a couple points…Isn’t it probably significantly more expensive for them to make foldable screens than to make a smaller phone? Also wouldn’t a larger device mean more materials involved which may mean similar or just as high costs as to engineer something more compact?
Also these are open questions, I’m not expecting you personally to know one way or another, your comment simply inspired them. If someone else has some insight on them, would be interested to read it!