The small form factor is really nice to have. Some people don't want a gigantic phone, it's true. Maybe we are in the minority, but a huge phone is inconvenient at the times where you don't need a big screen. I still can't even unlock the thing without having my big dumb face directly in front of it.
The screen is gorgeous OLED and it's terrific to watch Youtube/Netflix on in bed. The camera is incredible. A foldable phone would clearly be the most practical, but I know Apple won't ever do that, and I won't switch to Android. At this point, I just have this stupid thing attached to me at all times, and I'll have to accept it. You ever try running with a damn X/XS/XR or god forbid one of the Max phones strapped to your arm?
But my point is that just because people have gotten used to bigger and bigger phones, doesn't mean that they wouldn't appreciate it being smaller 99% of the time. Like I just mentioned, running or even going for a walk wearing gym shorts with one of these devices in your pocket is pretty much impossible. They are too large and weigh too much, flailing around and whacking you in the knees. I have a battery charging case which admittedly adds more weight, but it literally pulls my shorts down when I go for a brisk walk with my dog.
So to call those who desire a small phone a "hilariously small and vocal minority" sounds to me like "people are in denial that a bigger phone is always better" when that most certainly is not true. It has benefits but I still think they should have kept the SE2 the same size (4") as the SE. The ideal solution would be a phone that can be big OR small depending on situation.
Much like the concept of a touch screen as pitched by Jobs himself during the initial iPhone reveal (context-sensitive buttons/keyboards depending on what you currently need vs. a static keyboard), you can't tell me that the vast majority wants a huge phone every hour of the day.
I'm just saying that the SE would have sold better or people would have been more upset about the discontinuation, or the Xperia compact line would have sold well...but people want a big screen. It's proven by the market. I'm not saying there isn't a market for a small phone, I'm just saying that there is a much bigger market for a larger phone. (and the original comment claimed the design wasn't popular because it wasnt 4/5 sized) The companies are not idiots out there, all of them went to larger phones because the majority of people prefer them. (Notably the older crowd with worse vision that came onboard to smartphones in the early 2010s and the crowd that got addicted to apps.) I loved my 5S back in the day but the larger screen is much better when you actually use it in depth.
Imagine my surprise when I got an Apple Watch with cellular specifically to avoid having to take my phone with me. Absolutely absurd - and it's obvious why - they want you to use Apple Music. I refuse to be forced into using a piece of software. And before someone comes back with the inevitable "well you should have researched it":
1) I never thought such a simple and obvious concept would be absent from the Apple Watch, and 2) I use the Watch for the utility of fitness tracking, and that far outweighed the inconvenience of having to continue bringing my phone with me everywhere. I'm not a big runner anyway, usually mountain biking, and my phone is in my backpack or mounted to my handlebars.
Bottom line is it's ridiculous.
EDIT: I did some research on this again and it appears that Apple actually does allow developers to stream and store data from the watch, and that it's Spotify who have yet to release an update for their WatchOS app that provides that functionality. Interesting turn of events; at least I know it's theoretically possible and not gated by Apple.