Anyone in our business hears this request a lot. There’s even a song parody devoted to this very subject: www.youtube.com/watch?v=2fwV-dI0DxM
Why is this so common? Sometimes when clients look at designs, they are focused on the things that are important to them, or what they think will be important to their bosses, like the logo. It’s understandable that they want their branding to be emphasized, but it’s more important to consider the viewpoint of their customers and prospective customers. It’s not about what you care about that matters. What do your customers care about?
Prospects really want to know what you do and what’s in it for them if they do business with you. Everything else is secondary. This is why your messages should first focus on the things that are important to them, and follow-up with information about the company. A larger logo may actually be distracting, and is a dead giveaway that you are a small company or have a small company mentality.
One more thing: Consider how a smaller logo may enhance your brand. Do you want to project an image of refined professionalism and quiet confidence? As the undisputed experts in your field, you don't need to scream your message -- you can quietly and confidently state your case.