It's actually compact, cheap, has oled, in-screen fingerprint reader, stock Android, NFC, Snapdragon SOC, supports GSI and has unlockable bootloader. Seems like a perfect phone (well except nonexpandable storage), so what's the catch?
It isn't that compact. Comparatively, sure, but objectively, no. My samsung s10e is smaller and more lightweight and it's not even that compact in my opinion. There hasn't been a truly compact mainstream phone since the Sony xperia xz1 compact. Before that it was the moto g. IPhone mini was pretty small, but fuck apple though.
The catch is probably Motorola's lackluster software update commitment (I think it's around 2 years. It's already been updated once, so you only have 1 big OS update left.) and the terrible chipset. The Snapdragon 695 isn't that much better than the Snapdragon 732G and the Snapdragon 732G phone I had was constantly dropping frames in the simplest animations even 2 years ago. This is not a good buy.
I think Motorola is just being smart. Now that xiaomi crap is becoming either too expensive or plain shit they saw a niche and they're filling it. Recently got the g84 and I can't believe what I got for my money - I guess they reduced their margins so they can own the lower end. Or medium end to be honest