Hell yes! That was my thought exactly.
I know that most consumers are interested in bigger displays. I understand their wanting them and hope that they get what they want. However most is not all. Since I have a laptop and an ipad, I for one would love a smaller phone. Even if it can't run most apps I have the other stuff to do that. I just want a compact phone with gps/maps and music player on it. wifi would be great to tether off of, but I could live without it. I can't be the only one.