The main reason for a minimum size, and why larger is better is the radio link back to earth. They need a certain amount of power and a minimum size of the antenna. A bigger antenna might save on the power, but that is just shifting size form solar cells to antenna or back.
They might save on the "video" bandwidth, just like with the mars rovers. On mars it's the delay that makes real time control from video impossible. The same should work on the moon too - so even 1 frame per minute might allow driving, just slower, and with more intelligence in the rover itself.
For the wheels - larger wheels add weight and make the rover higher, as in this type of construction the wheals are really below the vehicle.