At very low flow you lose pressure due to leakage, which is what causes the loss of torque, however on a mini digger, it's more to do with how they regulate the speed. They just rely on a basic spool valve, so don't have any proper flow/pressure control. If you were to use proper flow control that limits flow but still allows full pressure, they wouldn't stall anywhere near as easy.When you get that little oil flow it will be a problem. Track a mini digger slowly and chuck a brick Infront of it. They will come to a stop.
The issue is variable flow control isn't a simple thing to implement, so on a mini digger where the most common speeds are stopped, or flat out, a couple relatively crude spool valves is acceptable.
However on something like a mini dozer where the main use is drive at varying speeds, using a couple spool valves to regulate oil will quite quickly heat the oil, so you really want a more efficient and controllable setup.