Scouter

I have used a Phoenix wire processor before. They are great if you have a high volume job shop with lots of repeat projects. Just the programming time alone makes them cost prohibitive for most panel shops. The software interface is critical in making them user friendly, we demoed a few before we purchased one. In addition to the panel shop we were also a distributor for many main lines (ABB, Phoenix, Turck, etc.) and it took a lot of discussion to make the decision to purchase one at cost.

The key that you are missing here is that you are in section 28, Power Circuits. The smallest size is 14 AWG. If you look in section 37, Control Circuits you will find that smaller sizes of wire are legal.  The terminal connections for all field wiring will still need to be capable of taking a 14 AWG wire regardless of the circuit type (37.2.1). The exception is with Class 2 circuits, they may have a smaller terminal block, see section 37.4