All digital images will appear better when they are at a resolution that's equal to the screen resolution. If your image is too big, then it will be resized. The interpolation method that is chosen will affect the image quality.
I am not all that familiar with how panos are resized (is it done in TW or does the browser do it? I don't know), but the principle is the same. Your monitor is only capable of displaying at 72dpi. Large images have more information (pixels) than the monitor can display and many pixels will be disregarded. On the other hand, if an image is smaller than the viewable size, then pixels will be duplicated, which also negatively affects the image quality.
I'm not sure what it is, but there's probably an ideal size (pixel dimensions not actual file size) depending on the intended viewable size (a small window vs. full-screen).
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