tbh the iPhone4 camera was a big step up from the 3GS, but the 4->4S was a huge step. I don't think it's really fair to be moaning about the 4 camera being behind the times when it's been out for 2 years and has been bettered twice by Apple since.

As for the bezel: you can't just lose bezel from the side, at least not on LCDs (and, I suspect OLEDs are the same). You need to run electrical traces to each row on the screen, and those hookups go from the driver IC that sits on the driver ledge (top or bottom), down the inactive screen areas on the left and right, to the rows.

This could get solved by adding thickness and working out how to do through-glass vias - you wouldn't want them running over the pixels as that'd reduce image quality - but that's not generally a tradeoff people fancy.