Very true. Some will settle for the size, just because price + iPhone.
Those who like that size certainly won't say, "Wait. Take MOAR of my money!"
The iPhone SE is the only iPhone to ever tempt me. I've been iPhone curious and had one just to see (about when iOS 5 changed to 6), but even then for a used 3GS I though it was too many $$$.
The SE has some compelling internals and the price point is about right for maybe the first time in iPhone history, IMHO. Typically I look at their product as overpriced. I know scores of millions disagree with me every release, but that's my criteria. I hate to feel like I've just been raked over the coals and someone is laughing at me as they count the money they've just duped me out of.
I paid $485 for my Lumia 1520 BNIB in August 2014. iPhone 5S was current at the time and would have cost me as much or more for lower res screen, less processing power, 1/2 the RAM, less than 1/2 the megapixels, no SD card, no Qi Wireless charging, no NFC, tiny battery...
iPhone 6+ was just about to release... Today on the Apple website it would cost $750 to get a 64GB (to make up for no SD card support) for a new 6 Plus. Same class of screen as the 1520. I don't want to argue about the processor because somehow Apple's chip outperforms the paper spec, but can a dual core 1.4GHz A8 really best a quad core 2.2GHz Krait 400? Still only 1/2 the RAM and less than 1/2 the megapixles of the 1520. Finally gets NFC, but still no Qi wireless charging and a way smaller battery than 1520. Less hardware for $265 more. $265 dollars gets you a great backup phone or a whole bunch of accessories and apps...
I'm willing to bet way more of the success of the iPhone SE is due to price ($400 for 16GB, $500 for 64GB) than the screen size. Finally something for spec counters to look at. The A9 chip is still only dual core, but clocks at 1.84GHz, finally 2GB RAM. Camera breaks the double digit barrier and gives 12MP. Tap to pay, but still no wireless charging built in and that battery... For crying in the mud why can't they ever put a battery in the things? At least for the SE you don't have to sign a carrier contract, or take out a second mortgage.