"Traditional size" is something that got established, like "OO/HO" in Great Britain.
The first iteration of "traditional size" were the 9" freight cars Lionel made just before World War II. The cars were proportioned to the die cast steam locomotives made at the time. The range was extended after World War II.
The first diesels - F3 and NW2 - were scale sized. Subsequent locomotives - GP7, GP9, Train Master, EP5, Rectifier - were also scale sized (the EP5 and Rectifier were compressed from C-C to B-B configuration).
There was a second iteration of 10" freight cars starting in 1949. And 65' (15") streamline passenger cars starting in 1952.
The result was "traditional sized" trains.
Auburn/Kusan made trains the same size as the Lionel prewar scale cars; these were later made by Kris.
True scale cars were made in the 1970s, with more types and styles being made in the 1990s.