Re: specification of breaker size
The question I would ask is not about a simple short circuit, but rather about the future loading of this circuit by an unsuspecting user.
What if for example, during a cold winter, someone plugs in 19A of light bulbs and electric heat into this circuit? Over the night how much heat will be generated in the #14 wire, and is it run through insulation where the heat will build up or near other heat sources?
The hightest electrical generated temperatures often occur not in the wire but at the connections between wires. It is where the resistance is the highest. Have you ever seen a hot connection, but where the wire is cool?
What if the 20A breaker is a little out of spec? What if it takes 24A to trip it? I have seen older breakers fail to operate at their specified current. There needs to be a little room for error to add up and not create an unsafe condition.
Finally, there's one sure way to devalue otherwise good property: install an electrical system which is non-standard and questionalbe. If a future prospective buyer finds this code violation he or she will question the entire electrical system in the building.