It's much exaggerated in online dating. I'm short too, but IRL the height is less of a problem, women taller than me routinely approach me in clubs. In online dating, they just filter by height using "AND" operator, and that's it.
But I agree that women are obviously filtering on that.
As an anecdote - one site I was on took a while to publish my height and I started having conversations with women. As soon as it showed one dropped contact and the other said she felt 'no chemistry' after we had basically said hello to each other :)