They are small, yeah, but the more you spread out the infrastructure the less space you need to build each storage point. There are small substations already on land all over every city, town and village in the land. I don't see any reason you couldn't utilise this land to install battery space.
The more you spread out the infrastructure the more space you need overall because you must repeat infrastructure components more times. Most small substations don't haveany spare space, let alone enough to house a high capacity of batteries plus all the battery management and connectivity required.
It might well become part of the answer when batteries improve. Maybe all of the answer if they improve enough.
Having the grid dependent on millions of privately owned things that the grid itself has no control over has problems of its own. It might be a solution when batteries improve, but it's not going to be as straightforward as companies selling the kit will make it out to be.Have you seen Tesla's power wall? That's the kind of thing I'm talking about. They could be easily installed in attic space on external wall space on most properties. Access is only a problem if they're owned by the electrical companies, I see them becoming part of home infrastructure in the same way that people currently own solar panels and boilers.