Those are all reasons not to recruit large units. That is a player choice. There is nothing about having more gold that forces you to recruit larger units, especially if you are running into these problems.
I think his point was that, with all else being equal, more gold available means all sides will end up recruiting bigger units. This won't change anything to the actual course of a war, since both sides are still on the same footing as before, but it will increase travel and repair times, making warfare altogether slower. It's not an unbalancing effect, but it's a slowing effect. While I think the effect is small, it is a fair point.
