In the last few years, small screens have been a dying breed. Nowadays, it is difficult to find a display smaller than 5 inches - iPhone 4SE is the only small relatively recent model that comes to my mind. According to their CEO's statement, Xiaomi continues that trend, with their latest two models both having 5.15' screens.
Few people question this "enlargizing" of smartphones. Nowadays, people use their phones for much more than communication, with some using them more often than they use their TVs or computers - hence why they need their screens to be large, so that they can use their phones comfortably.
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Android 7.1 Nougat will appear in smartphones by the end of September