What do I want in my Android Phone?

Big Screen, more RAM, Stock Android or Good Camera - What are my priorities. So here goes a list of items that one should check out and the reasons for doing the same

4.5 inch is about the minimum required today for a decent experience with Social media, emails and light reading. (A 4 inch one is a heavy compromise)
5 Inch is the minimum for people who do a lot of reading online - This is also the ideal size for a compromise between handling ability and readability.
5.5 Inch is the ideal size for reading (most kindle models are 6 inch). But this is a little big for single handed reading.

With the kind of apps being released and the frequent updates, 1 MB is minimum

Some important apps do not work with anything below 4.2 And a few require 4.4 (kitkat) - So I would suggest kitkat at the minimum.
Stock Android is your best bet - Since this is more of a dream, the version that has the minimum bloatware should be ok.
Update: Marshmallow (6.0) is out and it is really good.

I have taken this as a separate sensor. There are some phones which have been sold with A-GPS which did not have a real GPS sensor - DO NOT buy these if you need maps or navigation.
A-GPS is a technology name that provides assistance to the real GPS sensor by providing approximate location information through cellphone towers.  The real GPS sensor then uses this to get the exact co-ordinates much faster than if it did not have the assistance of A-GPS.

At the minimum  - Accelerometer
Preferable to have a Magnetometer (ecompass) - Many apps that show direction or are used for navigation perform better with an ecompass - Personally this is in my required list of sensors.  I have found some apps do not work altogether without the ecompass, like antenna finder apps.
A Gyroscope helps in a faster fix when using the GPS and is useful in somegames as well  - Not absolutely necessary

Bluetooth 4.0
Wifi b/g/n  (minimum b/g)