Well,
So....as terence says, no, and you can dance standard if you like. There isn't an ideal heighth but you are at a disadvantage if you aren't tall with long arms and legs. You can overcome it through dancing large and completing your lines and working on flexibility but you are going to have to work harder then other people.
Its the same in Latin. I dance Latin but I'm at a disadvantage because I'm almost 5'10" It takes longer for me to complete movements and because my legs are so long its easier to spot the errors I make. It is also harder for me to turn on balance then someone who is say, 5'4". However I work hard, move faster and use arm and leg length to advantage.
It's competitive and for some its cutthroat and they'll take any advantage over you they can get. So you have to work and fight to look as good as you can, and unfortunately for some that means they'll stand next to someone who looks bad so they can look good in comparison.
Its not that different in the real world. Have you ever noticed how many pretty girls have ugly friends? The only problem is that it isn't symbiotic in the dance world unless the shorter couple has really done their work and looks better than the couple with naturally longer lines.
My opinion based on observation. It isn't really written anywhere I've seen. You can dance standard, and do...but work your butt off. Besides 5'4" isn't all that small. I would say it was if you were 5' or less. Go for it, standard is a blast.
