I'm using a 2 wpc amp right now with great success. I've been told that the "rule of thumb" is that you need 20dB headroom which means that if I'm listening at 70dB, I should have enough power available to go to 90 dB just for the extremely loud parts. I think they are especially referring to classical music that has tremendous variations in volume. That said, my 2 wpc amp will indeed play much louder than I need it to.
So I've been thinking about it quite a bit and critically listening to my system, trying to find a weakness at higher volume. And I can't.
I'll keep reading this thread but I think there are 2 reasons people say this: 1. It is natural to feel more secure having more power than you need. 2. Cheap amps that were overrated in the first place and probably has nothing to do with us here.
I'm sure my skepticism will inspire replies. I'm open minded.
Jerry