Small ships projected the power of the fleet behind them

Do modern navies underestimate small vessels for force projection and protection?

Yes, but small forward ships are effective only when funded adequately and backed by credible major fleet units.

Modern observers can underestimate the value of small vessels for protection and presence. Uncrewed surface vessels may help protect larger ships, while a suitably equipped River-class patrol vessel could spread a navy's visibility economically. That economy only works if the navy continues to fund cruisers, carriers, destroyers, and other combat power. The sloop's deterrence came from forcing an aggressor to attack a commissioned warship and thereby pick a fight with the fleet behind it.