Yes, a house can be too big.....but you can also be in danger of going too small IMHO.
We downsized from a 3500 sq ft Victorian house our DC went to uni as we no longer needed six large (two were 21' x 14') bedrooms. The (period) house we bought next was an unusual layout, with only two bedrooms - and bathroom - on the first floor, but no less than five reception rooms as well as a conservatory, kitchen and two shower rooms on the ground floor.
Bedroom-wise that suited our needs far better, but at 1600 sq ft it felt like too much of a downsize from what we'd been used to. Not only that but the kitchen was teensy in relation to the amount of living space. In fact apart from the main 20' square living room, all the other reception rooms were quite small. Had we felt the love for the house, we'd have opened some of the space up.....but unfortunately we didn't.
We sold that and moved to a 2500 sq ft Georgian house, but whilst that had the huge kitchen we'd been used to in the big house, the bedrooms (four) felt cramped and two had reduced head height, being the former attic rooms. After a couple of years we actually came to the conclusion the downstairs layout - three large receptions and a 36' kitchen - was too big for just the two of us!
I feel like Goldilocks writing this, but having tried house 1 (too small) and house 2 (too big), I think when we bought this house at the end of 2014 we finally found the one that's just right, lol! - 2000 sq ft with ample living space for all our bloody sofas and three/four good sized beds.....
It's been a flipping expensive experiment finding the right one though!