One would not deliberately choose an oversized PSV, but this may often occur in cases when BOTH nonfire (due to operational emergency or systems failure)and firecase relief loads are applicable, and the firecase load is much lower than the non fire case load.
In such cases, I wouldnt get too hung up over chattering during firecase - I've yet to come across designs where another dedicated RV for firecase was provided purely due to this reason. The RV will still relieve and prevent loss of containment though the trim may be damaged - there is probably much more extensive damage done to other equipment during a local fire than this RV. Also the relieving temp reached during a firecase relief scanario is not taken into consideration when setting the design temp for the vessel.
The same criterion would apply for thermal liquid expansion relief loads, where the installed capacity is almost always many times more than the calculated load due to heat gain from ambient.