Can a wire gauge be too large?

... it was always explained to me much the same as water running through a pipe. A bigger pipe will flow more water, but lower the pressure. A smaller pipe will not flow as much, but flow at a higher pressure.
Correct that water flow in a pipe is a good analogy. However, many people don't really understand how water flows in a pipe either. You can't always say "bigger pipe = more flow". It depends on the total system. A bigger pipe does have more capacity to flow, but other things may determine the flow. A classic question in beginning engineering classes is since wall friction restricts flow, wouldn't the fluid slow down and thus less flow out the end of the pipe? No, whatever you put in one end must come out the other (conservation of mass, in-compressible liquid).