anole's are fine in that small of a cage. I had an anole in a 10 gal. Live plants, real soil substrate, and a plexy top with 8 1/8th inch holes drilled and covered with screen and a standard flourescent light on it. It lived in there for 7 and 3/4 years, which from what I can tell is over their general life span. No UVB, no vitamin dusting, just crickets and water and a heat rock. But then again, this is a boring sit and watch pet. I never really handled the lizzard as I wasn't sure if that's what killed my other 3.
Armadillo lizzards I am told are not handle friendly. There's one at the pet store and I am told they bite. They also bite their tails to roll in a ball to stick out their thorny scales and they can be prickley. I've never owned one, but they do sorta look like mini-gators don't they?