Aside from optics and communications, there are other limitations to miniaturization.
For example, smaller objects become harder to track if communication is lost. Our current orbital debris tracking system only tracks objects down to about the size of a marble, and with greater numbers of small items it becomes harder to avoid collisions with larger objects.
Electronic components also suffer from reliability issues from radiation. Scaling down many components results in higher component density, and thus higher error rates as shown in Radiation-induced soft errors in advanced semiconductor technologies - Baumann, R.C.Radiation-induced soft errors in advanced semiconductor technologies - Baumann, R.C. and Soft-Error Rate of Advanced SRAM Memories: Modeling and Monte Carlo Simulation - Autran, et al.Soft-Error Rate of Advanced SRAM Memories: Modeling and Monte Carlo Simulation - Autran, et al.
As explained in another answer:
Miniature components are more affected by this radiation and that can produce unexpected consequences: Computer resets, memory corruption, noise on instrumentation readouts (especially for imaging satellites).
Down-scaling amplifies these consequences:
With the constant downscaling of microelectronic devices, the sensitivity of integrated circuits to natural radiation coming from the space or present in the terrestrial environment has been found to seriously increase
(Autran, et al.)