yep .. its all about small = cute :
CUTE AS A BUTTON - "cute, charming, attractive, almost always with the connotation of being small, 1868 (from the original 1731 English meaning of 'acute' or clever). Cute as a bug's ear, 1930; cute as a bug in a rug, 1942; cute as a button, 1946. Cute and keen were two of the most overused slang words of the late 1920s and 1930s." From "Listening to America" by Stuart Berg Flexner (Simon and Schuster, New York, 1992.)
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