I will have to respectfully disagree with you......
Asian breeders do NOT breed and raise up competition sized fish in 40s (not even American breeders). They use at minimum their "4foot" tanks, which are around 95 gallons. Others I have seen use even larger tanks. Just depends on the breeder.
Now when it comes to raising up larger sized fish in smaller tanks, IMO it is totally dependant upon the overall water quality, tank maintenance, feeding schedule and the genetics of the fish. Most people get larger fish when they keep them in smaller tanks because they do more frequent water changes and are just overall more careful of the general water quality. Frequent water changes maintain superior water quality (no ammonia, nitrite, nitrate, etc), help keep the O2 levels up and remove any feces/left over food which will deteriorate the water quality. It is a proven fact that fish who actively swim throughout their tank/vat grow faster and healthier. It is the simple fact of the constant movement that builds muscle faster. Fish which dont swim around very much are generally just fat fish and grow at a slightly slower pace.
Now for Wattley and his GIH "effect" IMO is a myth. It is all just a matter of maintaining proper water quality. Instead of a growth inhibiting hormone/phermone, I believe it is more like growth inhibiting "factors". Factors like high ammonia/nitrite/nitrate, low O2, poor feed quality, low/high temp etc. There has yet to be a study to prove that there are any types of hormones/phermones that are released to keep other fish smaller. It cant be proven because it doesnt exist. Maintain the proper water quality by keeping ammonia/nitrite/nitrate, O2, water flow, temp, etc. and all will be well for your fish.
And for the overall size of discus, it has A LOT to do with genetics. When I bred a lot of the newer color types they wouldnt always get to the huge size the classic types would (6" tops). The older, stronger types will easily get to a huge size. IMO, it has a lot to do with poor selection of cross/in breeding. The classic color types have been inbred quite a bit and have had a chance to breed out the weak characteristics. Which is why they can get to a huge size. The newer color types are in reality not all that old and they have been outcrossed to several different color types in order to get the desired color. When the Asian breeders did this, they dont always choose the best initial stock to cross with, which means any recessive traits can and will show up in generations down the line. This explains why some discus stock (say from the Stendker farm,which have been inbred for years ) can get to huge sizes (8"+) and why others (like discus from Asia) may not always grow to the owners expectations. So regardless of the water quality, some color types just wont grow as some people think they should.
-Ryan
Orlando Discus