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Personally, this island feels very appropriate. Most of it is vertical and gives it a bit of Orsinum feeling to it and that's not a bad thing because for me orsinium felt lived it.
It certainly looks very small. When i had a look at the layout at esomap some days ago i also wondered why it is so small.
And here is the problem, the expectations you get while looking at the world map are pretty high, i mean if you cut out the summerset landmass and paste it over tamriel then summerset should have the size of grathwood and malabal tor together, but when looking at the actual map of summerset it doesnt come close to that size.
I have to admit that i dont play on the pts so i dont know how big it really "feels" but just judging from the map its really small