There have usually been smaller androids available. But people didn't buy them in enough numbers to make them a thriving sector AFAICT. Samsung used to do the Galaxy Mini line, Sony always had smaller xperia's... But most folks seem to want a bigger, shinier screen.
That's not to say you're wrong in your desires, it's just they might not be widely shared.
I also hope this does well. It's a nice looking unit.