My understanding is that air resistance is where most of the pedal power goes to at high speeds, and that this is a concern not least for the wheels: What you pay for in a road bike wheel is aerodynamic and/or light wheels, not so much to other losses like rolling resistance and bearings.
So if air resistance is the thing to optimize a wheel for, the wheel should be tiny. Obviously in width, but also in radius, because even shortening the length of a surface reduces boundary layer drag, and the top half of each wheel is basically a surface that moves faster than the rest of the bike. Has anybody thought of this?
Postulate: The faster angular speed of a small wheel is irrelevant to air resistance: If the forward speed is given, every point on the wheel at a given fractional wheel radius has a speed compared to the ground that is independent of the wheel radius. In other words, shrinking the wheel does not speed up any point on its surface; you just get less surface. Which should be good!
Some speed record bikes have had small wheels, including the current record holder.