Outside of a tiny minority of raucous users here on MacRumors, NOBODY wants a tiny a$$ phone anymore. I have access to both an iPhone 14 and an SE3 and the SE3 is just simply too small. TouchID is a different matter, but I get why Apple so sunsetting it. The fact is technology changed and not everything lasts forever.
It depends on what you use your phone for, I much prefer the size of my old Huawei to my Oppo, easier to put in pocket. Phones are far too large these days and if I put my oppo in my trousers pocket while cycling it can easily come out, which means I have to where a coat or jacket with an inside pocket or put my phone in my panniers.
Sure, if you want to use your phone for watching a load of videos, then a larger screen is fine. The 16:9 Aspect Ratio have vanished for the most part, and now we have longer phones to house the notch or the pinhole for the camera, plus other info. Makes little sense because when you watch video, you have black bars on the side.
The say in the article about foldable phones, for people who want smaller phones. From what I have seen of foldable phones so far, I would not want one, I know a few people who have had one from different manufactures, and they have all had problems with the hinge or the screen. The technology is not there, and I doubt Apple will make it any better. Also, to be honest, I don't want to go back to the days of flipping a phone open like Captain Kirk does with the communicator in Star Trek.
So yes i can understand why some people prefer a smaller phone.
Touch ID, no doubt people will still buy iPhones even without it, i have never owned an Iphone, I have toyed with the idea, I could get used to IOS. Price is the one problem I have, but without any sort of fingerprint sensor, then I am certainly out. Sorry Apple, I like your Mac, but I prefer to use my finger to access my phone, not my face.