I read somewhere that having the bigger inlet does indeed help the pump move more water. I thought it was because the pump's impeller shaft is supported at one end right where the inlet is...making the inlet somewhat restricted. And if the inlet was the same size as the unrestricted outlet then there would be a difference of internal volume between the two. So having the bigger inlet allows the slightly bigger overall volume to account for the support structure for the impeller shaft.
Maybe I'm just crazy :shrug:
Side note...my pump has a 1.25" inlet and 1" outlet. I have the pump running un-submerged (it can run submerged if needed). It is hooked up to my 4" diameter ABS pipe reservoir.