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Small brings it's own benefits though. As does the lack of UMD drive, it's like a it's plus and minus point in one. Does anyone remember how much Sony were slagged off for making the PSP with a UMD drive? Many people hated it and it became a popular excuse for people turning to CFW.There's nothing great about it, that's why. It's just small.
There are also huge benefits (benefits worth paying for) to not having to have physical media too. Who here finds Steam much less of a pain when they build a new rig? Installing all of your old games with right click > install is so much less hassle than digging out the old disc and license codes etc.
Same thing could be said next time you are sunning yourself on a beach somewhere and don't want to have to whip out a man bag full of UMDs