You are too sweet! Its nice to meet a fellow shortie (getting there with accepting being an arm rest for the rest of the world hahaha). I completely agree about achieving the dainty look while being petite. On the other hand if you're short and chunky it automatically makes you look shorterI'm in the same boat and used to hate my height, a year or two ago I'd probably agree with you on it being tragic.
However, I really don't think being small is a bad thing at all as long as you're skinny. Skinny short girls can totally pull off the dainty/fairy look perfectly. Of course I understand lack of height being a major disadvantage in the modelling world though.
All in all- you should rock being 5'1! It's cute!