They did good with this. We need more smaller-sized, high-end phones. People who prefer a smaller form factor are already routinely crapped on by manufacturers who only make large or phablet-sized phones as their high-end ones, leaving low-quality hardware for the smaller phones.
Now if only people would notice Sony more... or if other manufacturers would follow suit.
I'm not too big on Apple but I do like that they are adding variety instead of a cut and dry, big phone and small phone. They are branching out of what appears to be their comfort zone by also offering a lower end iphone, Apple made a good decision with this is.