The problem is that smaller phones are usually fundamentally flawed in ways that aren’t about the smaller screen. Whether it’s a worse CPU, worse camera or smaller battery, people are almost never making their purchasing decision based on screen size with all else being equal. I don’t think we can conclude that most people who ask for a smaller screen don’t really want one because many just don’t want a slow phone that takes worse photos and dies by midafternoon.
I think there needs to be a recognition that bigger screens aren’t only about the bigger screens. They’re also about giving phone designers more internal space to cram in components and a larger battery.