I was unable to upgrade MacOS from 10.7.5 to 10.8.x and that is why I could not install Xcode5 on my MAC. I downloaded Xcode5 but due to incompatibility it can not be installed.
I was able to run app using XCode 4.6 in debug mode on an iPhone 4 with iOS 7 (and can't express enough how happy i got after that)
Steps:
Use incompatible Xcode5 (copy it from the dmg image to somewhere else, there will be a cross sign in it) and right click on it and Click "show package contents".
Go to Contents/Developer/Platforms/iPhoneOS.platform/Developer/SDKs and copy the iPhoneOS7.0.sdk file in the corresponding folder in Xcode4.6 after showing its package contents.
Go to Contents/Developer/Platforms/iPhoneOS.platform/DeviceSupport and copy the 7.0 and 7.0.3(11B508) file in the corresponding folder in Xcode4.6 after showing package contents.
Now when you open Xcode4.6 your project Base SDK should be 7.0 and if your device is not detected yet, disconnect and reconnect your device so that it starts "getting symbol files from iPhoneXYZ"
Hope this helps someone.
One more important thing, in your scheme Debugger should be set to "LLDB"