As above really.
I had a 5.25" Quantum Bigfoot a while back becuase it was the cheapest way of getting a huge disk at the time - all 2.5Gb of it
I can also remember using a machine with a 330Mb ESDI full height drive, that thing was the size of a small shoe box.
While a 5" platter drive with current technology would give huge capacities per platter and tremendous speed at the outer edge there are difficulties in doing it. The heat generation alone would be huge, the bulk of heat in HDDs comes from air friction caused by the spinning platters, 5" platters would generate a huge amount more than 3.5"HDDs (Raptors and most SCSI drives use 2.5" rather than 3.x" platters for this reason). There may be other issues with head placement accuracy due to the larger throw but I've no idea if that would be the case.
The biggest detractor though I think would be the lack of market. Most home/office PCs wouldn't be able to take a 5.25" HDD due to the small form factor of their cases. Plus is there a desire in the market place for 2Tb+ single spindle HDDs? I don't think there is, if you look about here there aren't that many of us who are running more than 1Tb and those who are have RAID arrays, backup drives etc rather than a bunch of drives all containing unique data.
As a technical exercise I'd like to see it done though, it's the only chance really to approach the capacity of HDD interfaces with a mechanical disk, in reality however I doubt it'll happen.