My Take Part Three (Size Matters)
Dial diameter has much more to do with whether a watch looks "right" on the wrist than case diameter.
A Large bezel makes the hands and dial space disproportionately small.
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I'd say the opposite. Giant dive watch bezels made people think they could pull off 40+mm watches without looking ridiculous despite clear evidence to the contrary. The worst offenders are the barren skinny-bezel minimalist watches which tend to look like saucers of flat empty wasteland.
I think lug length has a bit to do with it as well