We have played with a couple where the male was small. Very small.
Going into it, I remember the wife telling me that her husband wasn't as large as mine. (we played with her first alone, and then met her hubby)
In my mind, I remembered from health class that the average dick is like 4 inches, so I didn't think much about it.
Truth be told, by the time he got hard, I am not sure that there was more than maybe an inch and a half for actual penetration.
It bothered me, only for a few minutes.
He was the perfect size for anal, infact, it was so easy to have anal with him. Remarkably, it was very good to perform oral on him. I could actually deep throat without gaging at all. (Well, let's just say it was deep molar

) It was almost as effortless as drinking my Cosmo through a straw.
Since the 4 of us played in the same room-same bed, it seems like it really doesn't bother me that much. There is more to sex than actually fucking, and he definately made up for lacking size/girth with enthusiasm!
Whenever I reach the point where I want to get 'it', I simply took my turn with my own husband. It has worked out well for us.
BTW, I don't understand why there is a need to lie either. And it isn't just men that lie. I have had women tell me they are DD cups and in reality they are maybe a C. If you have the need to lie to your soon-to-be swing partner, make sure it is something that can't be easily measured on first glance.