I think more and more people want small carry guns because more and more people are acquiring carry permits who are not gun people. Not everyone wants to gear up with the popular G19 or similar sized pistol. Many do not want to alter their attire or daily routine just to carry a gun as much as we would like to think. There are also people who like a smaller gun as another option in a carry line-up. Manufactures are making guns smaller with bigger calibers but I feel that once each company has produced the smallest/lightest/most concealable carry gun in .380, 9mm, .40S&W and 45acp...the flooding of new models will come to an abrupt halt. There may be variations but the guns will finally be established as "their" version of that size/caliber category.
It's also not as common for people to walk around with vests or suits like they did back then which would require an even smaller gun to conceal under a simple tee or button down shirt. A mom that dosn't want to alter her lifestyle, but would like to have something in her purse to protect herself and her family is more than likely going to go for something small, lightweight and easy to conceal.
Good example is the Shield advertisement. It basically shows people going about their daily lives without shirts and pants 1-2 sizes too big. This is appealing to many weather they are gun people or not.
Now the current climate our country is in may be a reason why someone would want to buy or carry a gun but I don't see it as a reason why people want smaller models today or even back then. I think a small gun was and still is appealing for the very same reasons. Technology has caught up and we don't need to carry .22s,25s,32s in order to have a small carry piece anymore. We now have similar or smaller sized guns, with a lighter weight and in more potent calibers so those that would never trust their lives to a .22,.25 or .32 can now have a .380,9mm,.40 and .45 in a similar sized package.