The prices will come down as these go through iterations, so that isn't something that worries me. The Motorola one is what I am interested in. My wife in particular has been hanging on to an iPhone SE because she wants a small phone, and frequently still mentions her old flip phone that she loved. She'd still have a flip phone if it had a decent camera and could text more easily. She carries an LTE iPad in her purse so she doesn't need a big phone.
As for me, I remember the Samsung i300, i330, etc.; and the Kyocera 7135. These were incredibly compact Palm based smartphones that were pioneers. This new Motorola is extending that path and I can't want for this form factor to get out there and the prices to stabilize. I personally have on interest in something that fold out into a small square tablet at this point.
These are exciting times as what appeared to be a market where everyone was ending up with a rectangular slab of glass with different software options to now a real innovation space in hardware again.