if you think the PTZ's they got now are expensive, if they manage a quality one in a tiny package would likely double the cost to maintain equivalent quality.
there big and bulky in comparison because they contain lots of moving parts, moving parts = wear and failure, not to mention how important accuracy is.. nobody wants a PTZ that's presets drift all over... and nobody wants a PTZ that needs replaced every year or two, so takes some solid engineering and that dont make it easy to miniaturize.
It can be tricky to put a PTZ somewhere it dont stick out like a sore thumb, but luckily with that long zoom it can be done... my big black face on the back corner of my house looks at the street most of the time, but since its on the back corner people can look right up towards it and look past it like it was invisible or something... Hiding cameras takes a bit of human psychology, if you are clever enough you can put a camera right in someone's face and they wont even know its there... I guess it helps I was well trained in slight of hand at a young age, its second nature for me to distract the eye so I can pull something off covertly.