I was wondering is this a smaller carabiner,...
I was wondering is this a smaller carabiner, one i could use as a keychain?
These are definitely not the smallest biner, no.
Check those out! They are about as small as they come within the climbing category.
For even smaller, non-load bearing, "key chain" carabiners; I'd say gas stations are your best bet.
Places like the Home Depot and most hardware stores have Buckets-O-Biners like the ones you're talking about. Colors galore that they usually keep somewhere around the cash registers.
You may want to check out the Nite Ize "S-biner": http://www.backcountry.com/outdoorgear/Nite-Ize-S-BINER/NTZ0009M.html
Its not a standard carabiner, but people seem to like them. Several types are available on Backcountry.com