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iPhone SE 4 Rumored to Feature Action Button, USB-C, Face ID, and More
(www.macrumors.com)
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The first several iPhone models were even smaller. I say this as someone who misses my last 16:9 6" phone: 5.4" is definitely not useless.
Well I too had the first iPhone just a few weeks after launch and the 4 before switch to various androids and now back to iPhone.
Watching content back then wasn’t as widespread as today so in that sense it’s quite useless imo. Watching a 1080/4k on YouTube or watching a show on Netflix/Apple TV+ on such a small form factor seems like an annoyance.
Besides, my phone is what I use for 95% of my computing needs. Banking, identification.