I have a good enlarger to make prints up to 16 inches or even bigger if I use my darkroom wall, but with most 35mm films it lose a lot of quality bigger then 8x12in. But I have being more attached to small prints.
Small prints are easier to handle, less cost to produce and so more accessible to more people. I just like it.
I made research about 35mm contact prints (I mean 35mm frames and not contact sheets) to find out if it could be possible to sell it today where many people think the bigger the better. And by my surprise I founded out that photographers like Andre Kertesz started out selling 35mm contact prints:
Perhaps more than any other photographer, Andre Kertesz discovered and demonstrated the special aesthetic of the small camera. These beautiful little machines seemed at first hardly serious enough for the typical professional, with his straightforward and factual approach to the subject. Most of those who did use small cameras tried to make them do what the big camera did better; deliberate, analytical description.
It was what I needed to know to motivate me to do the same.
Recently somebody asked me if my frames and matt wasn't too big for my contact prints. I realised with this question that not many people are familiarized about prints (and paintings) display. Especially small ones. So yeas, it is common to have matt and frame bigger than the image it is displaying. Frames and matt are important accessories to protect the print and display it.
It is like comfortable clothes or powerful cars, people don't want them to be only comfortable or just powerful but they want appealing design, and design is so important that many people prefer paying more for products with nicer design than better quality (most unconsciously but many consciously).