There's definitely a balance needed here. It needs to be large enough to be usable and it can't lose too much bottom padding (particularly on the iPhone X because of the bottom bar). It also needs to be fairly difficult to ignore. But I agree it takes up quite a bit of space.
Thing is, obviously it's quite obvious what you need to do to get rid of it, then it's problem solved.
That said, I've reduced the size of a few things on narrower displays:
I think that's about the best we can do. I'll try and make similar changes to XF1 now...