I'd agree with all of that.
As a VMX race bike, I really don't ever find a 125 boring/inadequate - while they sometimes lack the 'tear yer arms out' thrill of a bigger bike, they're still plenty fast enough for a rider of my skill level and they present their own set of challenges/rewards to the rider.
From a fitness point of view, late in a race day I find that I'm still riding the 125 properly (and am relatively fast and safe and having fun), whereas when I'm on the bigger bikes I'm either flapping off the back/ragged, or I'm just dawdling around waiting for the end of the race.
Even when racing against 250s and open class bikes, the bike's capacity/power output isn't really an issue - ridden properly, the 125 is a match for riders of similar ability.
As an aside: I remember in the mid-90s, several magazines demonstrated the most riders were faster on 125s than 250s, even though most thought they were faster on the larger bikes. Nowdays, you can see there are plenty of guys out there on newish 450Fs who'd be heaps quicker on a 250F or even a 125 - and yet they all claim that they 'need' a 450?!
Oh, an I'm 6'0" and ~90kgs, FWIW.