How big an image is too big? If the soundstage exceeds to limits of your speakers, does that qualify as bigger than life? Or, does it depend on the music?
We know we can't fit the London Philharmonic in our listening room, yet improperly setup, can a recording of them can sound too big?
I am guessing it really depends on the content. A small jazz trio might sound overly exaggerated when we get the soundstage too big—and likely we've all heard the voce get the size of a refrigerator because of an improper volume setting, but I suppose the question comes down to where to draw the line.
In my reference system I set it up to make certain small and manageable groups sound just the right size. This works because I can imagine a small group right there in the room with me.
Once adjusted to properly fit, everything else falls into place. Large groups and orchestras aren't lifesize but they're certainly plausible.
Good to keep in mind that when working with illusions, it's best to perfect what you can manage within the boundaries of your room.