First time I've heard that term actually.
I'm a "small folder" guy I guess (biggest folder is a svörd peasant). My edc is 2.75in, but could legally carry more (although I live close to other places with a 3in limit). But I carry the smaller one because its... Smaller. Less space in the pocket, less weight, and still has done everything that I need. I have gone as small as the case peanut, but that doesn't work for me. Peasant mini is about as small as works for "my" uses.
And I guess personally I feel like functionally, if you're needing a 4in folder for tasks, then you're starting to get into fixed blade territory. If you like big folders (or have legal reasons) that's fine, it doesn't bother me at all. But beyond about that size range you might want to at least start looking into a fixed.
I get the handle size "argument", but I guess since my uses for folders are pretty light, I am fine with even a 3 finger grip (when I open a box I don't hold it in a full grip anyway).
Anyway, to each his own. I at least don't feel like I look down on larger blades, but I guess that doesn't mean others don't. And honestly, I feel like all the popular choices for blades fall into the roughly 3 - 3.5in range, so it would seem that both small folder people and large folder people are in kind of similar situations, just on opposite sides of the coin :/.
And my tastes for fixed blades is on the large side (BK9 =

).