Timex digits are usually thinner, sometimes they don't catch as much attention to the eyes as the bolder and thicker digits in Casio's.
As for the original question: "Why are the digits so small on most G-shocks?"
Why? Who knows. ;-) My speculations are: 1) there are more protective structures for the LCD screen (like the cross bar in the Gx56 in D2mac's post), hence limiting the digit size; 2) choice of styling (like D2mac said) as G-Shocks are known to have all sorts eye candies on the display.
There are/were big digits G's, rarer, but they do/did exist. Like the GD350 mentioned above and also the MTG-M900, which are in current production. The G3000 series, such as the G3011 below, included some of the biggest digits G ever produced. Unfortunately, they had been discontinued.