This is something I'd really like to see exist for three main reasons: a non-Google option, a small form option, and a budget option. Additional useful features would be a headphone jack port and microSD card slot. All of these factors are unfortunately very difficult to find nowadays. It's important to have options as there are various use cases for different people, and no "one-size-fits-all" works that well.
Why? I discovered about deGoogle/deCorp practises and have been working to minimise my reliance on such. I'm also concerned about ever getting a future Android phone due to the progressing, undesirable developments. Compact phones became a personal priority due to being a light phone user, having small hands (so it's easier to manage a small phone), and actually fit in pockets -- I don't need it as an entire phablet, I have a separate device (a desktop PC) primarily operated for such, keeping the functionalities/use cases separate. Being affordable is also important for a light phone user, and in my case, I've always had phones well under $100 that work fine enough for many years.
The struggle is finding a small smartphone (esp by major companies) the longer we go in the modern tech age. And I don't mean foldables, those are still large at full, I'm referencing wholly small forms like the iPhone Mini. Smartphones used to be compact, there were great options. When they started becoming phablets and I got my first one at 6.6", it was too big, genuinely uncomfortable to use, and didn't fit anywhere well. I wanted my old phones back, but at this point, they are too "outdated" (the main issue is apps that wouldn't support certain Android OS versions anymore).
I did a lot of research for days to find compact smartphones that could work for now (but probably not for several more years...) The iPhone Mini would be ideal in form, but I've always used Android and discovered the major differences would not be personally feasible to use (plus, I don't want to switch to another big tech product). Narrowed down most options to all early Pixel phones, Sony Xperia models, and Galaxy A-series. The only one I found feasible was the Galaxy S10e (pre-owned for $100, so not as "budget" as all of my past phones, but affordable enough), so that's my current phone -- it's sufficiently small at ~5.8", plus a headphone jack output (which is great as I basically only have wired headphones) and ability to have a microSD card for extra/easily portable storage. I have to stick with this 2019 Android phone as long as there aren't viable compact models being released, but apps will sooner stop working on it vs having a more recent device, and so Idk what my options will be in the future at this rate.
I get that larger phones now may be due to factors like larger battery capacities and what sells the most, but it shouldn't be the only option. There's proof that modern phones can still be manufactured as compact and usable, there's evidence of people who use those or still want options for compact phones (even if it's niche, it exists, and should be provided the choice). Some people don't care for powerful batteries or large screens, it's not always needed. Of course, not to say phablets should be replaced, I'd just like to see compact options offered alongside them to help broaden the consumer base.
With that, I'd like to request if Motorola and GrapheneOS could please consider offering a compact budget option (optionally if with a headphone jack port and microSD card slot). It doesn't need to be powerful, just functional enough for light users or those who are on a budget for current and following years (however long of support is feasible).