Hi Sam,
Firstly, good luck with your project.
I think you've hit the nail on the head when you suggest it might just be bling, and marketing. While jeweling undoubtedly improves performance to varying degrees, depending where and how it is applied, I don't believe the size of jewels adds anything; in fact you might suspect that larger jewels are likely to be made of inferior material to smaller jewels, purely due to cost consideration, so it may well be that the larger the "jewel", the less benefit it has.
I think of Liverpool jeweling as not only being oversize, but also graduated, with the jewels getting larger as you move round the movement from the lever towards the fusee. Undoubtedly it's aesthetically pleasing but I'm unaware of any mechanical benefit. And when it comes to the fusee I reckon we are well and truly in bling land.
My Liverpool Jewel examples come mainly from the late 1850s/1860s, and I understand that the consensus on these is that they are to better compete with the higher end American movements in the American market, so it was also a marketing tactic.
Others here may disagree with my thoughts - perhaps this will encourage some further comment.
Finally - a picture of your 1860 Donegan watch would be good, that might also encourage further comments. Here's a couple of my examples with jeweling to the fusee, plus another that doesn't include the fusee and may not even be classified as Liverpool jeweling; it is jewelled to the centre wheel though (and is a Massey 3).
Cheers ... Andy
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