What makes a watch too small?

[SeaGuy]

I want to start by saying, in my opinion, everything is personal preference and people should wear what they like however they like. But I believe the common metric for determining that a watch is too large is if the lugs overhang the wrist.

What I have never seen is a similar metric in regards to a watch being "too small." I have seen the term "wrist presence" brought up, but I am not sure what that means exactly.

When do you feel a watch is too small?