Historically "BIG" things is an american face-thing. Big cars, big bikes, big muscles, tall buildings, etc. Everyone have heard the expression, "everything is big over here". When Europe, Ericsson and Nokia, made small cellphones, the american customer still used big phones, with big external antenna, which they pulled out during talking and then pushed in. I remember those days, yah!
I've been building stuff directly on my embedded devices years and years ago, as it was easier to do there that to fight with crosscompilation of every package. Be that the SA110 powered iPaq (Compaq even provided a "build farm" out of few networked PDAs) or more recently my NAS box (a 500MHz MIPS with 64MB of RAM), where I git the "Linux from scratch" to bootstrap Gentoo, then rebuilt Gentoo there. Compiling kernel is fun, compared to building the full toolchain first (gcc compiles itself 3 times before you get the final binaries)....
Form factor is in the eye of the beholder. If it can be used as a phone, it can be called one.
And you actually could use something like that, assuming something like a bluetooth headset. It would be a bit inconvenient to hold up to your ear.
The question wouldn't be "Is it a smartphone?" It's "Is it a *good* smartphone?"
this all may be true but as soon as projectors get just a little bit better and/or display glasses get perfected the phone can go back to a flip-phone size, nice for any pocket. Battery life gets 5x better because the display power gets moved off phone and the display area shrinks also lower display energy demand from glasses. Projector power is another story...with ambiant light issues.
Steve Jobs pretty much subscribed to Henry Ford's "They can have any color they want, as long as it's black" philosphy. This is why I've never been interested in Apple stuff or participating in the iPrison system. One size/choice will never fit everyone. They didn't design the iphone for people like me, but I think they're ok with that. Apple clearly accomplished their goal without me.