Absolutely. But ...
Yes we're watch ... enthusiasts but I'm not sure that makes our opinions unfashionable or incorrect. I can't get away with a Planet Ocean under a shirt cuff - it just won't fit no matter how much I like it, particularly with the "look at me" orange bezel and rubber strap. There are plenty of thinner dress watches with a larger diameter but, to me (and all of this is subjective afterall) a large dialed dress watch is just wrong anyway. There's either too much empty space on the dial or they become too busy to be a dress watch.
The real question is what you want a particular watch to be. I have garish, in your face, cartoon watches; I also have tool and diver's watches - my "beater" is a 1972 Mk II which I love not only for its looks but the legibility and history. Yet more and more I am drawn to watches from the late 30s to the early 70s - to my mind the real heyday of (wrist) watch production. I know and understand the advances in watchmaking (God, the co-axial movement is poetry in motion), waterproofing (yes, I want a sea-dweller just for bragging rights) and many other areas .... but I also adore my vintage dress watches and wear every single one in spite of - or because of - the fact that they're less than 37mm.
Fashion is one thing, but does that mean that the salesman was right to say that one watch is "wrong" because it's smaller? Then again, I don't own a pair of skinny jeans nor a single breasted suit. I'm tall enough and wide enough to find that having a suit made to measure is easier than altering something off the peg and gives me a better fit and feel. My tailor might well (and has) said that slimmer fits and single breasted jackets are the fashion but he doesn't push one on me when I ask for something else. That seems to be more along the lines of the complaint here than anything else, doesn't it?