You might want to try subbing to NewCon Press. They publish novellas. In fact, they just launched (or are about to launch) a set of SFF novellas.Honestly, I'm not overly disappointed. I was only joshing with HB; I do actually think the version I subbed was stronger than the first draft that he saw.
Still, as you say, @Serendipity, I will act upon their feedback , trim it back down and try again. Good that they sent some feedback so I ought to act upon it. I might hold fire until (if) I get hold of an agent though, as these novellas as tricky to sell (my current publisher said she wasn't overly interested even before I'd outlined the premise) and there aren't many open calls for the Great Unsigned.