Yeah the size isn't really a bad thing, lower DPI sure, but it's not like with the 3DS XL where you can notice things being more pixelated, I mean most phones these days already have insane PPI when compared to your average monitor.
Feels really good in your hand too, seems to be below the weight treshold where it feels uncomfortable to hold during a long phone call. Unlike the Lumia 920, similar size but felt much worse in the hand, mostly due to the sharp edges near the corners.
I'd so as far as to say the 2014 Moto G is the perfect size smartphone wise, nice big screen, yet fits in your pocket without issue. I love the thing so much, just wish Android had a built in screen colour manager like WP8, it was rather nice to be able to change the colour tone and colour saturation, albeit in a simple way. Luckily I am just fine with the tone of the 2014 G. But still, options are good!