We do our children a disservice if we make Him anything less if, in Phillips' lingo, we make Him "small."
Jesus was a real, human baby. He WAS small, for a while. The Son of God chose incarnation as a human baby for a reason, just as He had a reason for the words and actions of His adult life.
We had our own version of a "Jesus baby doll" last Christmas - our son Allen, born on 12/22/01. We hugged and rocked and fed and changed him, just as the Blessed Mother did the Infant Jesus. This year we get "the Second Christmas," where the baby is a year old and tries to eat the presents and knock down the tree ... and we recall that Our Lord was once one year old, too.
I think this author is devaluing the Incarnation, the true humanity, as well as Divinity, of Jesus, in his emphasis.