i always found 0805 to be 'about as large' as 1206
Some of this seems to be due to rather inconsistent footprints in the default eagle libraries (and eagle libraries from elsewhere as well.)
Notice the unusually small spacing between the pads of the eagle 0805 R & C packages, and how much smaller Sparkfun's 0805 package is compared to the EAGLE default (but then the SF 0603 package looks like a straight copy from eagle.)
(the eagle chipled packages look like the best set to me...)
EAGLE has separate footprints for wave vs reflow soldering, and people who are hand-soldering may wish to use larger pads to leave more room for the tip of the iron, so it looks to me like it gets "complicated" pretty quickly.