The Wall Street Journal is reporting today that manufacturing of the touchscreens for the iPhone 5 has begun, and that it incorporates "in-cell technology," which allows the screen to be thinner and also improves image quality. Basically it incorporates touch technology right into the glass rather than having a separate layer for it. Thinner is better, especially since an LTE phone with a larger screen would require a larger battery. You have to make some components smaller to accommodate it.