If Apple was not doing a me too, there'd be no larger phone rumours. But there is.
What I meant is that Apple is not jumping into the larger smartphone form factor only because they noticed competitors trying that way (read: "I have no strategy but someone else is going that way... me too!"). Apple tried a very clear strategy which involved keeping a smaller form factor and if they are going to release a large format it's not simply to emulate competitors, it's most likely because Apple realized their strategy was not the winning one.
And the whole phone size thing, Apple will make profits from the larger sized phones. That's almost a guarantee. The catch is at what cost. Trading off your ideals and what makes Apple, the Apple it is today (ie striving for the best products and not just catering to the masses demands), is that a cost Apple is willing to pay? I think Apple is willing to pay it. if I was TC I could not pay that cost. But I'm not TC and it probably will happen.
Striving for the best products doesn't mean ignoring the masses' demands. The opposite: it involves understanding the reasons behind the masses' demands and designing a product which satisfies these demands in an exceptional way, maybe even in ways the masses' themselves didn't expect. Apple did it with the iPad, maybe they'll deliver something completely different with the iPhone 6 too, but it would mean that they understood why premium consumers want larger smartphones and found a way to satisfy the underlying requirement in some other way.