You need to learn a bit about dwarfism and proportions then.
There are two basic types of miniaturisation, dwarf, and midget. A dwarf retains some/many proportions relative to the full size version, but is "squashed" down to a smaller size, making everything look charicatured. A midget on the other hand, is smaller overall, and retains proportions relative to ITSELF rather than the standard version, meaning it remains the size of a juvenile, or perhaps slightly larger. Sometimes the two can be inter-related, with varying degrees of one mutation or the other present in a single case.
When a fish is deformed, it is disabled because certain limbs, body parts, etc are out of place, or twisted, stunted, or just missing. In both dwarfism and midget mutation, everything is where it should be, meaning that the fish can still function quite normally. In some cases of gross dwarfism, deformation can occur due to the defective genetics involved. These types of disfunction however occur in all mutations and selective breeding is used to reduce and eliminate such things.
A blue ram is not what I would call grossly dwarfed, it is just slightly smaller, slightly rounder, and has more exaggerated features than the normal morph. Some people seem to react very strongly to this, when albinism, puffing (telescope eyes, bloated appearance), colour mutations or long fin mutations are seen as perfectly acceptable.