An ATS does not know how big a tank it is attached to. Give it nutrients and light and flow and it will grow. However, you have to keep in mind that the "average" nutrient removal rate is different than the nutrient removal rate at any specific point in time.
Let's say you have a "heavy" bioload in a 100 gallon system and an ATS designed to handle 10 cubes of food a day. On average, maybe it can keep up. But, every day it goes through cycles where it isn't processing nutrients at all, and with the heavy bioload your nutrients are going to climb quickly. If this is at the same time of day you have your lights on in your DT, you'll likely get algae happily growing there because the ATS isn't really competing with it. Then, let's say you clean the ATS. It takes a few days for it to really restart growth and in the mean time, you'll have 30 cubes worth of nutrients built up. In the mean time, that algae in your display will be happily consuming those nutrients, and your corals might be suffering. Then consider what would happen if one of the lights in your ATS got turned off for a week for some reason and you didn't notice. You might have a disaster on your hands that the system would take months to recover from (or even be in a teardown/restart situation).
Compare that to a "normally" loaded 100 gallon system fed maybe 3 cubes a day, and an ATS designed for that load . That's only 30% of the load rate and 30% of the available nutrients at any time compared to the heavily loaded system. You are much less likely to get growth of unwanted algae in your display because the nutrient levels will never be as high as the heavily loaded system. This system will be much more stable over time and much less likely to head south quickly if there is any kind of hiccup.