Just like people complaining about "phablets" a decade ago right? "more bulky than a phone, smaller than a tablet"?
Manufacturers want phones to be thin so the only way to fit in the battery life is for the whole phone to be larger. In case you didn't notice it's really really difficult to find a side on photo of the iPhone Duo closed. They don't want to show the thickness.
While you, personally, might prefer smaller phones, and that's a perfectly valid preference, you are very much in the minority.
The iPhone 17 is 149.6 x 71.5 x 8 mm
So no, the note 3 is bigger than the iPhone 17
But, and this is probably what you meant, the iPhone 17 has a bigger screen. That's because recent phones got rid of the bezels, so they can fit more screen in the same body. That's why they have taller aspect ratios.