Here's a logical explanation: seedlings don't go into larger containers because you can easily overwater them. In a small cup, the soil would dry waaay faster if you, say, overwatered. But in a larger container overwatering = death by rotting. At least this is my train of thought. I don't think stem and root development have anything to do with your question. Those 2 things are tied up to the vegetative state of the plant, not to the amount of soil, lol. Someone correct me if I'm wrong (if that someone knows what they're talking about). I may not know alot, but I go by the logical assessments, not by guessing.
I myself think 5 gallons is too big, as pointed out before. I have a plant which has been 1 month into veg and now almost 7 weeks into flowering. No pot bound issues, even though the roots are everywhere..if you don't plan to veg for more than a month, then you should be just fine into 3 gallon containers. After entering the flowering period, not very much root development is going on, as most hormones will be directed to the buds. Oh, I did start this one into the bigger pot just about 2 weeks after the seedling popped, and I started another one in a small pot, and boy what difference that made! Being a beginner myself, I didn't know at that point when to transplant, but I do know for sure now that you'll experience faster growth if you just let the plant fill the whole container before transplanting.
Now on the genetics thing, I believe this comes with the experience. Of course, you can pick a mother even from your first grow, but it may be shitty, even though the grower thinks it's the best shit. Then, a couple more grows later, he realizes his bomb-mother is not so dank after all. Growing different strains should also be practiced among newbies, because each and every one will teach you a different thing and then you can take the middle-ground instead of always worrying about how much nutes you give them for example. Seeing different behaviors makes a great deal of difference, in my opinion.
Your seedlings look good so far, but remember not to overwater. Less is always better than more, remember that. And bring those lights closer (2-3 inches at most). Oh, and also don't even think about nutrients or shit like that...your plants should be well on their own at least 2 weeks from now, in those containers and just the right amount of water. Hope this helps ya!