It makes sense. More surface area to volume means faster extraction of all the various chemicals in the grounds. If you get off flavors from oversteeping, you're bound to get them faster with a finer grind.
I try not to steep my very find grounds more than 3-5 mins. 3 probably being better, and usually with just under boiling water. I go to the line on my grinder between Medium and Fine for most french press coffee.