I don’t think it’s anything to do with size, there are larger planes than the 777X that are perfectly safe (and of course, the 737 is pretty small as far as airliners go).
There is no level playing field here, if pilots were required to be retrained for new planes even if they are the same class it'd increase costs in general but it would, at least, level the field to avoid these shortcuts for certification.
Being hyper efficient has its costs, this is one of them, an airline can't stop flying some of their pilots because they are on the razor edge to keep their margins. It is in the design of a competitive market, we might have to take a second look on what's the net-positive of having that much "efficiency" forced by the lack of incentives in other areas such as safety.
Can they just not do that?