andyr,
The size exaggeration doesn't occur with all recordings and to me wasn't a big deal as imaging isn't tops on my list of importance. Who cares if the instruments aren't placed in space exactly as the original recording, (if that were possible to know), or, as randytsuch pointed out, where the engineer moved them to during the mix? (Well, I guess somebody does, thus this thread). It doesn't bother me during live concerts and it doesn't bother me at home. I actually liked the scale being larger than life with my Maggies and Acoustats but on certain recordings instruments were definitely HUGE. I pointed it out because there appears to be a focus on the soundstage being as accurate as possible which I also assumed meant in scale. I also think it's nonsense to say, as JLM suggested, that dipoles and bipoles produce "virtually no imaging." I've owned Maggies, Acoustats, Mirage, and Definitive Tech speakers and they all did the imaging thing incredibly well!
By the way, my soundstage was the opposite of yours. I always had great depth with my dipoles but the width was confined to the outside edges of the speakers. They are magic, though, when set up properly and I sure do miss them sometimes. I don't miss the Acoustats but definitely wish I had kept the Magnepans.