You could use a size 5 starter on a 1/4 HP motor with no problems to other than to your pocketbook (and maybe control transformers). Overload sensing, whether heaters or otherwise, must be able to be selected appropriate to the motor.
To the best of my knowledge, the starter and overload package do not limit (in practical terms) the "ALLOWING EXCESSIVE CURRENT IN WIRES" during the inrush of starting. If the inrush exceeds the trip curve, the power circuit is (should be) opened.
What it sounds like you are asking is analogous to "can I use 10AWG wire for my 3 Watt night light receptacle". Yes, no code issue.