Heavy Duty is a moniker, and certainly indicative of it's being physically larger and having more flow than a stock one and with added capacity in the reservoirs. We've been using that name ever since we started carrying the larger master cylinder many years ago, to differentiate it from the regular ones.
But the name itself does not have anything to do with it being a more appropriate choice for every application.
We offer these larger-than-stock master cylinders primarily for use with boosters and for use with larger brakes, such as the GM disc front brakes. Especially and importantly when used with the larger GM-based rear disc brakes, in order to keep a firm short throw pedal action.
They'll work in a manual situation and you can still stop the Bronco, but it takes a noticeably harder leg effort to get the job done if used without a booster.
Yes, a smaller piston gives more output pressure than a larger one does, and that can be a good thing. Sometimes though you just need the extra flow from a larger piston to do the work properly. Different setups call for different options, as nvrstuk said.
Heavy duty in the name or not, If you're running manual brakes and/or drum brakes, I would not go over 1" diameter. As said it will still work, but it's not optimal unless you have strong legs and don't mind that hard pedal.
Paul