Dogs with psychological complexes?

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I saw someone walking their dog recently, and the minute they passed by my yard the little thing started yapping loudly and trying to run over and bite me. Little dogs can be very nice, and big dogs can be mean, but I've noticed that a lot of times, bigger dogs have kinder more easy-going temperaments than little dogs. Even with 2 dogs (or 3, in this example) that are both very well behaved and calm when apart come together (for instance, my 2 big dogs and my neighbor's little dog), the little dog often goes nuts while the big dog just gets excited and wags its tail because it wants to play. Do you think that maybe the smaller dogs are sometimes conscious of their size and try to assert their power through barking, growling, and snarling all the time at bigger dogs that could eat them in a couple of bites? Maybe because they're small, they perceive everything as a threat, so they try to ward off other animals/people. What do you think? Does that even sound plausible at all, or should I just find something else to do with all my free time instead of thinking about these kinds of things, lol?