I agree that most photos (at least most not shot on large format film) look best printed at reasonable sizes. I think the trend towards larger prints also partially comes from the fact that at least in the U.S., the average house size has increased dramatically in recent years. "…the average size of a new single-family home ballooned - from just 909 square feet in 1949 to 2,480 square feet in 2021."
See The 2022 American Home Size Index. Certainly, ceiling heights have increased as well, with 10' plus ceilings becoming common in the past 20–25 years. Big rooms with high ceilings demand larger artwork.
My wife informs me that the trend in interior design/home decorating is small prints matted in large frames. She just ordered a set of 25″x25″ frames matted for 11″x11″ prints. This is an odd size print, but I found one lab that offers it as a standard size.