First of all, Little's play should totally be a catch.
However, the stupid rule as I understand it is that in order for the receiver to get credit for a catch, he needs to maintain control all the way to the ground or make a football move after getting possession. He can get the ball, get 4 steps in bounds and then 4 more out of bounds like Little did and still not have a catch if he loses it going to the ground.
I think if he got two feet down and then made a move, like punching the DB in the face, it would have been a catch if he lost it afterwards.
Similarly, if he never went to ground and the the DB knocked it out after he was out of bounds but standing up, then I think it would have been ruled a catch.