I’d say the opposite in most cases. Why spend an age grinding a bit of 1/2″ square HSS when for most jobs a 1/4″ square will do. It is only really when you can’t avoid excessive tool stickout that bigger helps. keeps the costs down too
likewise with inserts no need for a really big cross section holder when say 8mm will do, many a modern benchtop machine won’t have the power to need the rigidity of a larger tool and will just flex elsewhere particularly the jacked up CL500 . Smaller holders also tend to take smaller inserts so again a cost saving.