My theory is that this is related to an illusion I experience looking through a window at hills several miles away. When directly in front of the window, the hills look a long ways off. When I'm 50 feet or so from the window, the hills look like they're right there, immediately outside the window. By narrowing the field of view, the hills appear much closer.<p>Maybe when the moon is close to the horizon, the sky looks less big because local terrain encroaches on its boundaries, and so the moon in turn looks bigger in a seemingly-smaller sky.