I agree it's a lovely fish no matter what it is. It may well be a hybrid, however it's features coincide with a shepard. Looking at the shape, mine is oval, the flame is almost triangular in shape. The dorsel fin is flatter and more elongated compared to that of a flame. It's colouring and patterning arent that of a flame (although this will naturally vary from species to species.)
From google images alone, forgetting the research I have done suggest it is more similar in appearance than the flame.
http
/www.google.co.uk/m/search?site=images&gl=uk&client=safari&source=mog&hl=en&aq=&oq=&aqi=&fkt=&fsdt=&cqt=&rst=&htf=&his=&maction=&q=shepards+pygmy+angel
The price has no relevance as it was sold to my LFS as unknown Angel. He identified it (he has 20years experience, 10 as a marine biologist) his father who owned the shop before him has 40years) it came in and they didn't think it was a flame so researched it. He showed me the research and books and I agree with their diagnostic. It may not be a shepards angel but it's not a flame angel, and it's way more similar to a shepards in my opinion.
I don't understand your length comment all fish start as small and grow. It's certainly not adult in size for any dwarf angel.
I appreciate your imput and comments though, and I see where your coming from but I do disagree.. Incase you couldn't tell!!