It's also worth considering the Martin LXK2 Little Martin in the Koa finish. It's a 3/4 sized guitar. I got this guitar for my wife and she loves it. Loves it. For the same reasons you wanted a smaller guitar, she got this one too. She's 5'3" and didn't want to wrap herself around a full sized guitar.

Actually, a number of years ago, we got her the Baby Taylor and that was a terrible guitar. I have a Taylor myself and love it so it's not a bag overall on Taylor but that Baby Taylor? Not a good guitar. The neck is literally screwed to the body through the top of the fretboard. Seriously.

However, the Mini Martin is a great guitar and comes in natural spruce or the Koa mahogony (the Koa is actually a wood laminate but sounds great).

We ordered it from Chicago Music Exchange and prior to ordering, I did an online chat to see if I could get an additional setup as my wife wanted lighter strings (10s). They did so adding only the cost of the strings. It came ready to play and I too really enjoy playing that little thing. It plays quite nicely.

Anyway, something to consider is a 3/4 sized guitar too. My wife doesn't feel like the guitar is handling her and that she can handle the guitar.