Get out you reading glasses, for it appears that Verizon is preparing to launch the tiny Palm phone. 3GB of Ram, 32 GB of storage, and a 3.3" screen are targeted to your guess is good as mine. I guess it would be convenient to carry for mountain climbers and others with limited pocket space.
Definitely an outside-of-the-small-box concept. It cannot be set up on it's own line, but instead has to be paired with a traditional smartphone on a Verizon line. Basically, it's an alternative phone for when your regular smartphone is too large to be convenient.
I definitely think the idea of having a small phone for people who are hindered by having to carry a much larger phone around, such as joggers, hikers, construction crews, police, and many others, is a viable one. But having to pay $350 for a small phone that must be attached to the line of one's larger phone is restrictive, and Verizon will probably only sell this phone to a small group to whom money is not an object. I still have a small Kyocera $10 DuraXT flip phone that is great for the intended uses of the Verizon "Palm" phone, and these Kyocera phones are still produced and sold by Sprint. And I'm sure there are many other similar phones still being sold for much less than $350 that will work on on the other carriers.
For $80 to $100 the Nokia 8110 seems to fit the bill for a small and easy to carry 4G phone with dual sims. It lacks the higher specs of the Pepito, but does one really need or want such specs on a comfort phone.