I'm Taras, user interface specialist behind DaisyDisk.
There're definitely some usability issues related to "smaller files…". They're not perfect, but proved being a very effective way of reducing information noise. In practice dealing with this item, representing collections of small or equally sized objects is often useless because it requires too much micromanagement (example: a set of 1000 photos plus some icons and text files) we're trying to avoid. It also mostly distracts one from the main goal: free up some space (not "just wipe out files I don't realy need"). Make sure I'll recall this question the next time we start the next big round of sunburst improvements ;)
And don't forget that DaisyDisk is not a file manager and has never been positioned as such.
(Version 1.3.4)