Their intention of doing "mini" phones is just to tie the smaller/second-from-top model into the brand of the larger phone, for easier marketing. At this point I don't think anyone's really intent on doing smaller phones of serious quality anymore - you can see this in how all the "mini" phones get bigger by the year.
The S5 mini is 4.5" and Sony's Z3 compact is 4.7 inches, neither of which can be considered small by any stretch of the imagination, but guess what, they line up nicely with the new iphone6, so that's set the tone for that market segment this year.
I've always wanted smaller phones with at least midrange specs, and by small I mean 3.2 or 2.8 inches
with very thin bezels. If smartphones are truly replacing or powering all our other portable gadgets, then there's a need for them in every size and shape as well. why not more variety in this way too?
But I know phablets/large screens are insanely popular in parts of the world. People can argue online about usability as much as they want, but IRL ever since the first Galaxy Note, all I see is people embracing large screens, adapting to the size and making it work for them, so they're bound to do well. I'd also love to see a smaller phone of higher quality, but really it's the consumers who assume they get short-changed with smaller screens (especially in emerging markets) that's keeping us from these gadgeteer wet dreams.