Liquidmetal is also said to be under consideration as a material for the chassis, because it's more durable than aluminium: a smaller quantity of this material can be used to achieve the same degree of strength as the metal used for Apple's current iPhones. This would enable Apple to keep the bigger iPhone light and thin, despite the bigger screen.
(Device strength may be on Apple's mind right now, following the'Bendgate' controversy that afflicted the iPhone 6 Plus.)
Plus, removing the bezels in the bigger iPhone to create an edge-to-edge display would mean Apple could introduce a bigger display without the need to increase the overall size of the iPhone too much.
It's also possible that Apple will bring some other elements of the technology used in the Apple Watch to the iPhone 7. For example, the Apple Watch's display can detect finger pressure, so the iPhone 7's display (or perhaps just a portion of it) could be capable of doing the same.
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