Genetics are something that rarely enters this discussion. In any given brood, there are bound to be outliers on both ends of the size spectrum. Not all fish have the genetic potential to reach the largest size a given species is capable of. I have read about not only discus, but a variety of livebearers releasing growth inhibiting hormones, but am too lazy to dig up any links atm. Also, I think it's more a function of reducing competition for food than it is about controlling size to fit the surroundings.
I agree, I think the hormone discussion was not about limiting the size of the fish that releases them.