Another Trek 7.2fx reference. I'm 5'5 with a 32 inch inseam and I ride a 17". Absolutely one of the best beginner bikes out there in my opinion. No suspension and it goes anywhere. Katy trail, roads, etc. You just aren't used to it. I started out on a big beginner Trek Navigator and was regretting it within a month. They always look smaller and skinnier when you are just looking at them. Why don't you test ride it? And you could have them put larger tires on it if you are uncomfortable with the size. I believe they come with 32c stock, but take much larger. More mountain bikeish.

Let us know how it goes!