Not new, and even Sandisk themselves do smaller
Yup, I bought two of these in Argos months ago (around easter I think). They're OK but by no means the smallest. In fact Sandisk themselves do a smaller one.
For the one I keep on my keyring I bought one of the Sandisk 8GB MicroSD cards that comes with a tiny USB adaptor (http://www.sandisk.com/products/mobile-memory-products/sandisk-mobilemate-micro-reader) and that makes a pretty cost-effective and really tiny USB drive, about half the size of this supposedly new Sandisk offering, and I can always upgrade it as prices drop by swapping the microSD card for a bigger one.
On a keyring it's always tied to the bunch of keys so one can't really have a USB drive that's too small (i.e. easily lost). Works for me.