I've seen you mention this before, however I'm unfamiliar with the phenomenon you describe, I haven't really seen it discussed anywhere else. Most texts on brakes dictate the tyre contact patch as the single limiting factor in vehicle stopping distances.
Ok, 2 identical cars.
Both running super soft sticky slicks on a track. Same compound.
One has standard 260mm setup. The second has, for arguments sake, a 4 pot front upgrade, or even a 282mm setup.
Both cars have the same compound pads.
Get the brakes upto the same temperature. The car with the smaller brakes will find they lock the brakes much easier. This isn't the tyre running out of grip, as they're both the same compound. This is the caliper/pad snatching the disc. It gets to a point where the pad cant slow the disc down any more through friction and clamps on instead.
This is usually caused by the lack of modulation. You're applying too much pressure to the pedal because you haven't got enough range of movement in it. Increasing either the diameter of the disc, or the piston size will increase that.
It will however mean you need to change your driving style, as the pedal will now feel completely different. Some people (read customers of mine) have interperated this as a problem with the brakes feeling 'spongy' or needing to be bled more to try and get rid of it. This isn't needed as you've either increased the pedal travel, or by increasing the diameter of the disc you've reduced the amount of force needed at the caliper to obtain the same force.
It can be a bit of a black art getting the setup right for the individual, as some like an over compensated pedal like found in new cars, as they want to stamp on the pedal, let the ABS kick in and do the work for them, so they've just got an on/off pedal.
Others dont realise that doing a brake upgrade doesn't mean the car will stop instantly, they have to learn to brake again in exactly the same way as jumping in a different car with a different manufacturers setup, it takes you a couple of hundred miles to get used to not wanting to either put your face through the windscreen or rear-ending the car in front
However all that said, I 100% agree, a balanced setup will always work better than an overcompensated front/rear setup. This is why I suggest when fitting a bigger front setup, you make sure the rears are doing what they should be, get the calipers serviced, then put some decent pads and discs in there. It's so often overlooked when working with brakes...
With regards to your question on ITRDC2, I've fired off an email to the supplier to see what he suggests for your setup.