You didn't? But what you mentioned falls into that category.
So what you are saying. Is that the issue with current AA is that it doesn't work right on very small polygons. The game you play is made out of polygons, which are placed in a certain fashion. Has nothing to do with how the AA looks.
If it doesn't work right on very small polies... Then my the AA on my model should look like ****. Most of the models consist of over 2 million polygons, quads, tris whatever you want to call them.
Maybe this will help you grasp it.
EDIT: Here is a pic for you if you don't know what a polygon is. Since you apparently don't.
All the little squares, are polygons.
pol·y·gon: a figure, esp. a closed plane figure, having three or more, usually straight, sides.