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Who is to say that Apple will not make a device that is much smaller than the new Xs series phones ? We simply do not know.
It will not be difficult for them to make a small phone , Star Trek Communicator, that will do much more than today's phone, except for the display.
I just received my Series 4 watch and it is a nice device. I can hear and be heard better on it than on my iPhone. One day Apple will pull a solar charging display out of a hat and the watch battery will last much longer .
Actually, I prefer the smaller phone, a larger keyboard as on my old MacBook Air, or 13 or 15 " Mac.
Software is the real name of the game. No software, no Sale. No reason to have a computer , because I sure as heck am not going to rack my brain trying to write some code at my age. I remember the Apple 1, 2 , 3, the Mac in a Box, etc and the Watch is a small Miracle - with more to come.'
No one knows what Steve Jobs would want today. Even Steve would be impressed or maybe I don't really know that !