I'm a woman and I personally can't imagine laughing at someone for their penis size, because that's a super shitty thing to do.
That aside, a large percentage of women can't orgasm solely with penetration, which (in these cases) makes dick size hardly relevant as far as satisfaction is concerned. That doesn't mean that penetration doesn't/can't also feel good, but even with a small penis, the G-spot isn't that far up the vagina at all, so unless your penis is the approximate size of a peanut, you should be able to reach it... and if even if it is that small, that isn't an inherently bad thing, and there are plenty of other ways to use it and make both you and your partner feel good.
But just for the record, based on what you've written, I wouldn't consider your penis small by any stretch (pardon the stupid pun) – that's actually an above average-sized penis.
I do understand that there's a lot of social pressure and an abundance of jokes as far as dick size goes, though, and I think that's a real shame, and I don't ever want to invalidate how you feel about it – this is just my 2 cents on the whole thing.
I'm so sorry that you're struggling with this, @Ednospatient.