Is there any truth to this question?

Does a bigger amp always sound better? No.
Can a bigger amp sound better? Yes.
Are lower powered amps simpler and easier to make sound good? Yes.
Do you sometimes need high power? Yes.
The "BEST" power amp in any given situation is determined by a series of variables, room size, preferred volume, individual taste etc. The best rule I have found is don't get more power than you actually need but make sure you have enough; see how simple it all is? LOL

Another question to which I am looking forward to answers. Two in one day. Not bad.

E
When you say issues...what are they?

Digepix,
If you`ve read previous threads covering this topic you know there`re multiple opinions and factions just like,SS vs tubes,digital vs analog silver vs copper etc.I believe(2 cents worth) that high quality built + simplicity is usually the route to take. A simple- minimalist signal path coupled with top level parts and strong power supply is much more important than merely counting watts. So much depends on the speaker load and efficiency(some speakers will sing with 5 watts, others will struggle with 300 watts) and preferred listening levels. In your example with the stated parameters, IMO the good quality but lower power amp(fewer parts and complexity) would be the path to better sound.I believe purer and more natural sound will be more likely. The less interaction on signal flow the better.

Before SMPS (switching mode power supplies) an amplifier's weight said more than it's wattage rating. Doesn't mean that I would choose a 70 lb, 200W amp to power bookshelf speakers.