You will lose volume and pressure at points much less than a thousand feet. There is a reason why we have different sizes of piping, 1/2", 3/4", and 1" for most homes. There is a method to installing the proper sized piping for a plumbing system, there is a code, and there is a wrong way and a right way to install the piping. LOL...Water is an incompressible fluid, so you can't lose volume. You will lose small amounts of pressure, but I don't want to do the calculation because it's definitely a non factor in this case without even the need to do a calculation. The pipe size should be a non-factor in the unit's actual operation, so they should be able to use whatever size is needed. I highly doubt that different sizes are "illegal" like you had said earlier, probably just much less common.