The small wheel bias comes from near death experiences riding in traffic outside the USA. Wheel size doesn't have much influence on speed, but it has HUGE impact on pavement ability.
I am in the market for something that is a conventional bike replacement with Brompton folding capabilities. I just can't find it.
Small wheels do work OK. But check out cycling in
any big city, worldwide: 90+% people
prefer full sized bikes.
Check out the iF
development sequence:
and specifically:

Full sized wheel behind super compact Brompton.
This shows that full-sized wheels
are compact enough.
BUT still low down, needing to be lifted and carried - So add a handle and roll it ............
Please excuse the cheap plug (ok not
that cheap :-) >
http://www.pacific-cycles.com/