Men with ANY size penis develops penis envy... It's not like we whip it out and compare. We use our imaginations... and, usually, we imagine ourselves inferior.
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Originally it was a term that Freud used for women when they came of age to realize that they didn't have a penis (boo hoo).
http://psychology.about.com/od/sigmundfreud/p/freud_women.htm
That was then... this is now. The link below talks about envy in penis size among men.
http://www.mmdnewswire.com/qpenis-envy-does-size-really-matter-or-is-it-the-size-of-the-matterq-offers-millions-the-answerq-2208.html
It all boils down to "the grass is always greener" complex. Men compare penis size, women fret over breast size. It never ends!

http://2.bp.blogspot.com/_BaWeTAWt3VI/R0CBLfOiU3I/AAAAAAAADf0/x4msreiG78o/s400/The-grass-is-always-greener.jpg
Source(s):
http://psychology.about.com/od/sigmundfreud/p/freud_women.htm

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I would imagine that some men have it, but I alway thing of Penis envy as a female term. I think jealousy as it Dr. Matt suggested always exists.
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