Not really. The OM cameras themselves are quite robust.
The quality compromises in the marketplace weren't because of changes in size, they were motivated by the need to minimize price and maximize convenience features to ensure marketability.
Prior to all the market changes that roughly coincided with the OM introduction, SLRs were relatively rare and generally found only in the kits of a very small percentage of committed amateur and professional photographers - most amateurs used box cameras or inexpensive fixed lens cameras.
It was the democratization of the market that the Canon AE-1 brought in that saw the huge switch over to SLRs as the camera of choice for many hobbyist and casual shooters.
The move to a smaller form was the Olympus approach to meet a perceived need in the burgeoning marketplace, while still providing a robust entry designed to service a particular niche - the photomicrography field.
I was selling cameras around that time. People liked the smaller size, but the two factors that most determined what kind of camera they wanted were the price/convenience feature balance vs. the availability of professional support/exotic special purpose lenses. With amateurs generally preferring the former, and professionals emphasizing the latter. And there were far, far, far more customers in the former category.

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