How can someone put LARGER wheels on a bike?

Secondly, if I follow your logic to its conclusion, wouldn't 12" wheels have even less "inertia"? Shouldn't we all be riding pixie bikes? Or rather a "pixie TALL bike" so we fit? Wouldn't a dahon folding bike be the fastest thing on the road? How about using scooter tires? Casters?

I don't think so.