It’s not like the current SE is a small phone. Small screen, yet, but the case is almost as large as the base iPhone.But that is assuming the SE were successful because they were small. The alternative explanation was that the SE were successful because they were [relatively] inexpensive, independent of their size. Or it could be a combination of both. But in any case, the updated SE (or 16E) will settle the dispute, since it won’t be small but it will be [relatively] inexpensive.
I suspect it is price, not size, that is the primary appeal of SE phones
Historically, since Apple brought out the first special edition product, the Macintosh SE, it was always a cheaper version with limited or older features. Size was not the driving factor.