I don’t see it as either/or. Most kids can pick what they want to study AND pick the environment where they’ll thrive. Big schools offer more majors AND are more likely to limit access to classes by school or major.
Many kids will bloom where planted and/or have no choice in the matter. Others may struggle to find friends, pursue opportunities, and thrive in general. A very small group will fail. As adults, we often recognize places - locales, communities, social settings – where we are less likely to be happy. This is no different.
The OP is looking for an environment where their kid can thrive from the get-go and trying to ask the right questions. This hardly means they are forgoing a good education.