I'm with you here, I went through a period of moving to feature phones and ditching the smart watch to reduce the phone back to utility rather than a distraction. But feature phones, even those running kaiOS, just don't have the support for communication tools and things like 2fa authenticator apps.

I eventually went for an iPhone SE (2016) in the last year, after it was discontinued and managed to get a boxed, new unit for less than even the low-end android market phones go for. Thus far it's the most enjoyable phone to use having moved from an S8 which was certainly "better" on paper.

The size is incredibly portable and easy to handle, the battery, despite only being 1500mAh, does a very good job lasting me the day (though I certainly expect it won't continue to do so) and the screen is acceptable but annoying enough that I don't want to be using it for long stretches. It's got the lastest iOS and I fully expect the lack of iOS 14 support will be the reason I have to swap it for a new model once software support falls away.

It seems like this new SE model is still the smallest phone you can get despite the increase in dimensions and weight that you mention. It's nice to see a comment that shares my view and I hope a market for the smaller phone will come back around similar to that odd stage in the early 00s where handsets suddenly became impossibly small.