It's not really a big surprise (and I'm certain you know it, but just so that everyone ELSE knows it, we should make it clear).
The thinner the wire, the more the voltage drops across the length of the wire. It's all to do with the propagation of the electrons along the wire and rather than getting into the molecular reasons for it, let's just say that the bigger the cable, the less voltage drop and leave it at that. Voltage drop is bad: if you're charging a battery in the tub with the alternator, and your 14.7V is dropping to 13.2V in the tub, you are NOT charging the battery at all. Increase the side of the cable to avoid the problem.
The fuse, of course, is there to protect not just the devices, but the cable and battery as well. A $2 light globe in the canopy doesn't need a fuse protecting it - but if a big heavy cable shorts onto the chassis, it can cause the vehicle to catch on fire.
So that's why we MUST use fuses, the fuses MUST go near the battery, and why we use heavy cabling over long distances (long = anything over 2m).