It very much does when you have a ton of FKs (enforced or not) using such a column, and thus indexed and used in many joins. Making it twice as hard for the hot part of an index to fit to RAM is never good for performance, nor for the cloud bill.
If you have a column that is used in many joins, there are performance reasons to make it as compact as possible (but not smaller).
If you have a column that is used in many joins, there are performance reasons to make it as compact as possible (but not smaller).