Wild or not.. I can agree to some degree that a smaller enclosure is umm... for lack of a better term "better" for babies...
But, is it really better for the babies? Or for us?
Sure, a smaller enclosure is better for us. It's cheaper (short term), and it's easier (and, again, cheaper) to clean.
The only time I've heard a good and true argument for a smaller enclosure is for bearded dragons when you feed inside the tank. Sure I've heard you "can" house species in xx gallon tanks, and according to the state of Florida, I only need like a 6ftx4ftx4ft enclosure to house my two 5ft Iguanas (and that's sharing).
No way would I keep 'em in something that small though (The outdoor enclosure I built for 'em is 10'x5'x7').
I'm not so sure about the "overwhelming" bit, cuz whether they're captive bred, or living out in the wild, they don't know any better (or worse) really. Sure if you take a wild caught animal and put it in captivity, you'll want something a bit bigger so the individual feels a lil more secure.
If you're feeding your corns outside of their normal "Homes" though, does it really make a difference other than the cost of maintenance?
As with beardies, the only reason I think a large tank for a small corn could be a problem is the inability to find its food easily. If you feed in a separate tub outside their tank, this problem never occurs.
The only other thing I can think of is that having a big cage just looks dull and boring with a tiny lil baby in it, heh.
Personally, I keep my babies in 12qt. rubbermaids. Gives 'em plenty of space to crawl around (although usually they just go vertical and curl up in the lip of the lid, heh).