Their are probably thousands upon thousands of Raven .25's, Colts, Browning, PSP's and so on out there. Kel Tec P-32's, Beretta Tomcats, old Colts, Brownings, and a zillion European .32's. Are they still viable? Of course. Would you be better off with a larger caliber? Yes but not always.
I recently bought my girlfriend a P-32 Kel Tec brcause she neede something that was very concealable. After letting her try the P3AT, assorted .380's, .38 J frames, and so on she found the Kel Tec P-32 was the most she could handle in a small gun. The need to carry unobserved was a neccesity. .32 was the most she could fire rapidly and accurately from a small gun. So for her it was the best choice within the limitations of what she needed.
I loaded it with the hottest ball rounds I could find. Penetration is vital in any handgun.
The .32 usually doesn't expand and penetrate well. It's usually one or the other. You must reach vitals. The whole idea of "stopping power", "one shot stops", "knock down power" in a handgun is a myth. Read Jim Cirrilo's book on guns and gunfighting. He and his partner both emptied their revolvers on a large perps face. The infamous 158gr. round nose bullet was was the required load. Remember it was damned for overpenetration. After laying their awhile the guy asked for somthing to blose his nose with.
Out came a .38 Special slug. He walked to the ambulance under his own power. All handgun round have great successes and great failures. Once you begin to study the subject you realize lots of folks drop from .22's all the way up to .45. Lots don't. The only thing you can do is get a weapon that meets your needs (in this case it had to be small), that is reliable, is a caliber you can shoot well and fast. And practice lots. Those are about the only things you can do to effect the outcome of a gunfight.
No caliber guarantees you will survive. Nothing can guarantee that. You can only improve your chances with good training and mindset. Most of the factors of a violent confrontation are out of your control. Small .22, .25, .32, and .380's have been used for a long time to good effect. Hit vitals, hit fast, and keep hitting. If you do that and your gun is reliable and you reach vitals you stand a good chance of stopping your opponent. But there are no sure things including heavy calibers. Are they better??? Yes if circumstances allow and you are good with them.
But the whole thing about small bores only making someone mad is b.s.. A magazine full of .32's to the chest, neck, and head will probably do the job. We get too hung up on caliber. For every story of a small bore failing you can also find the bigger ones not working. If .32 is what you carry get good with it. It will probably see you through the night.
