Real production use cases absolutely have small n. You don't hear about them, because it's very hard for them to cause issues. Unless the use case changes and now the n is not small anymore and nobody noticed the trap.
I have an app that's been running an O n^2 algorithm in "production" (free open source app used by various communities) for about half a year now.
It's been fine because "n" is "number of aircraft flying in this flight simulator" - and the simulator's engine starts to fail above around 2000 anyway. So even in the worst case it's still going to run within milliseconds.
Real production use cases absolutely have small n. You don't hear about them, because it's very hard for them to cause issues. Unless the use case changes and now the n is not small anymore and nobody noticed the trap.