Small DSLR bodies?

My wife needs a new camera.  BUT, she has very small hands, so we are looking for a small-bodied DSLR.  Right now, she is using a Nikon D40x, which she likes.  I don't like the quality of pictures she gets, though.  (Nikkor AF-S 18-135 f/3.5-5.6 ED lens)

She has fairly decent technique and understands the basics of photography quite well.  (This is NOT the reason she isn't getting good photos.  She gets very good images when she uses my Canon 7D)  She does NOT want a professional level camera, though, as she is more interested in simple "snap-shot" or "vacation" photos.  Plus, she jus tcan't hold a big, heavy camera system steady.

So, can anyone recommend either:

(A) a new lens for the D40x

(B) a new SMALL camera body.  Or

(C) a new system.  (Micro 4/3, mirrorless, etc.)

Thanks!

Jim