I am looking for some SMD LEDs which will fit in a 1206 size space but with the light coming from a dot about 1mm diameter. Anyone know of anything like that?
A standard 1206 LED has the light coming from a much larger area.

 

Some LEDs have a diffused glass and it looks like the entire part emits light.

Some LEDs have a magnifying glass that makes the silicon look much bigger than it is.

Some LEDs have a clear flat glass and you can see the silicon. The silicon can be less than 1mm.

I just found this one:

 

I have ordered some LTST-C21KRKT. They may do the job.