Check out the height of the bottom bracket from the ground. This is often really high on small frames , perching the rider way too far from the ground. If you fit short cranks then you can use a much lower BB and retain cornering clearance. It seems common sense but only a few custom builder tweak the BB height enough to make a difference.
You can sometimes get small touring style bikes using MTB wheels, check out Surley. Terry have a good following for their small frames and make a nice 26" flat bar bike.