Really, does size even matter to gamers? Personally, I think the smaller the joystick...the better...right? Yeah, it allows for quicker and easer thumb...action. Regardless, Buffalo has released a gamepad that is probably the smallest functional gamepad out there. It folds in half for portability and also include a retractable USB cable to prevent any kind of messy tangles. It is available in two models: one featuring a traditional directional-pad and the other featuring a tiny joystick—similar to the PSP joystick.
Buffalo USB Micro-Pads [Akihabara]