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I already found the increase in size and weight from iPhone SE (2016) to iPhone mini quite significant, so... YMMV.

it's not a "bit":

Weight and Dimension 169g, 148 x 68.5 x 8.9 mm

thats a full cm longer than the 2020 SE, which is already bigger than the mini. it might be "an answer to the mini" in features and spirit but not in size by far.

A notch just makes the screen slightly smaller. Why is that a dealbreaker when you're already asking for a smaller phone?

Apple dragging out the notch removal as long as possible. When they finally do (next year?), notch devices will look/feel like old trash.