As you said, it is a string length issue, but here's a few points to ponder.
I don't think that Clarkson's choice of 16mm/ 5/8" for its small chucks was entirely arbitrary, since they were designed when MT2 was common on quite big machines such as Bridgeports. Even then, some such chucks had stiffening rings that gave extra support. There's a law of diminishing returns dependent on variables such as workpiece material, depth of cut, feed rate, length of overhang from spindle, general machine rigidity and condition, and cutter material and type.
I believe that the maximum recommended end mill diameter for the fairly solid VMC/626 is 20mm, which is not that different from Clarkson's 16mm
Integral shank end mills, which are the stiffest of all, are seldom more than 25mm.
Face mills and fly cutters have much less overhang, so less leverage and as a result can be bigger without causing problems, but I feel that 40-50mm in steel is a practical maximum.
The huge cutters you mention IMO exist largely because there is a market for them, and not for their actual utility. As for collets, I can imagine someone having a chuck to fit a set that they already had, and only using the smaller sizes,
I expect there will be many who disagree, but this is my take on it.
Ps. I' m talking about my experience on a very solid Hayes. Modern mini-miils etc have nothing like the same capability, so sizes will need to match accordingly.
Edited By jonathan heppel on 21/11/2013 09:53:56