Bigger, yes. But the issue here is where to position the target area. The less you have to move your cursor to reach frequently accessed targets, the better (as someone who doesn't use mouse accel this extra distance is very noticeable).

But the corners are far away. Testing just now, it took two swipes to get my mouse where the start button would be. It took one to get to the dock.

Resolution has nothing to do with physical size, because modern higher resolution screens typically have higher dpi

Fitt's Law is resolution-independent.