The reason for small section passes (say 10"x10" or 16"x16") is that you are trying to perform paint correction and abrade the paint while concentrating your energy (power to do work). Using slow arm speed and concentrating on a small sections will yield higher results rather than broad brush strokes. If you were doing a fast-n-quick AIO with minimal correction result expectations, larger areas swaths could be used.
The larger the swath, the more real estate you're trying to spread your pad, product and energy over and thus will result in less correction.
In other words, in terms of energy (power to do work), you are concentrating, pad product and energy in a smaller area thus getting the achieved results of the energy/work. Your section passes should be 50% overlapping as well. In addition, when you move onto the next section, be sure to overlap the area also just performed by 50%.
In terms of energy, the section passes in smaller areas maintain an balance of all said above, without damaging the paint. For example, if you even shortened your section passes to a much smaller area, the energy (work of the tool, heat, power and product) would build up. A lot of folks looking to do "spot buffs" while chasing scratches will ask why did they burn through their clear-coat. This is because they concentrated too much energy in a small spot.
Typically through years of trial and error, the average assumption is work in smaller sections, enough to disperse the energy to not burn paint, but enough to correct the paint.
Hope this helps!!!