Here is a decent summary.
If a jumbo jet was ten times more efficient than a smaller plane, they would go everywhere. If a giant pickup truck got a 100MPG, why would you take a 30MPG economy sedan anywhere?
Airlines used to use a hub and spoke model where it would make sense to have larger planes between hubs and smaller ones to get to and from the hubs, but consumers strongly preferred direct routing, so it didn't work out. For orbital payloads, most payloads probably do not mind too much if it takes a month or more to boost/deboost themselves to their intended orbits.
Due to strucrually efficiency, larger ones suceede where smaller fail due to higher m0/mf ratio