I think the SF also has to do with the mass of the motor. Depending on who you are, the over load may be set at the service factor amps or the full load amps. In any case, the overload is supposed to account for thermal capacity. This includes cooling and heating. When the motor shuts down it takes x amount of time to cool in order to start again (enough thermal capacity). Since smaller HP motors have less mass, they cool quicker (or heat up quicker for that matter) and they move heat away quicker than a larger motor. Thus, they can run at a relative higher current than a larger motor. This is just my thoughts and I have nothing to point you too but it makes sense to me.
I have always seen lower HP motors have a larger SF than a larger one (according to NEMA this is the case) but there is likely an exception somewhere.