There seems to be a competition to see which camera manufacturer can produce the largest LCD. It has currently moved beyond 3 inches. One has to consider that the larger the LCD, the more battery power is drained from shooting. Unless the LCD is particularly bright with very high resolution, it is not even viewable under bright sunlight.
Many of them are also very susceptible to damage as well if you knock your camera.
Related to this is that following trend Sanyo on their video camera has replaced their LCD screen with OLEDs. Organic light emitting diodes have the advance of requiring less battery or electrical power, being brighter than LCD, having a 160 degree viewing angle and handling motion as well as opitcal viewfinders on DSLRs.
Along with processors that run cooler and produce less noise, ISOs of 3200, super zooms that run from 21mm to 400mm with macro, and shortly OLED viewfinders that match optical quality and better because you can see changes to exposure etc. in real time on the screen, as well as high resolution video capability, you suddenly have a camera that negates the advantages of a DSLR. After all someone with an all-in-one can get the photo faster than someone who is in the process of changing lenses.
Canon apparently indicated an intention to start the changeover from LCDs to OLEDs as soon as they can.
Ronnoco