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Why can't we go back to small phones?
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There is a large degree of this, at least with some manufacturers. the iphone se referenced being a great example. If you’re a tech dork that wants fancy features you will overlook the se 100% of the time because even if you value a small phone many (basically all) of the bells and whistles on flagship models are gone as the se was based on the low end models from 1-3 generations back. No face id, no 5g, no magsafe, etc
Even for casual users: if you valued photography the se had the absolute worst camera of all the iphones. It was slow, it had less storage (64 gb minimum vs 128gb in the iphone 13 and newer), noticeably worse battery life, etc.