It's a bit different on my side of the pond. There's mainly 8mm shank bits, you'd have to look very hard to find any 1/4" shank bits.
Here it's either 8mm or 12mm, and some 1/2" as well. Long ago there used to be some 1/4" and even some 6mm bits, but the 6mm never took off and the 1/4" quickly lost to the 8mm bits.
I haven't had any issues with 8mm shanks being not stiff enough.
Obviously something small diameter like say a 4mm straight bit won't be the stiffest of all, but there's a couple of companies that make very nice fine-grained solid carbide bits in these sizes.
A 4mm straight bit with a 12mm shank doesn't make much sense in fact, for the radius used to step to the bigger diameter is limited, so the 8mm bit would have less stickout then the 12mm bit, making the 8mm option theoretically stiffer for the same cutting depth.
In large diameter bits the thicker shank is a plus, but I'd rather have a premium quality 8mm bit then a reasonable quality 12mm bit.
My OF1010 won't take 12mm bits, and I hate that. But it makes sense, for the majority of the bits that aren't available in 8mm but are available in 12mm ( or 1/2" ) would take to much power. Large diameter profiling bitsets are nice, but my main interest is in deep fingerjoint bits, edge-glueing bits, drawer-front glueing bits and the likes.
Sadly enough, no decent quality bits of this sort are available in 8mm in my neck of the woods, although it's probably for the best.
The main reason as I see it is the power needed to feed wood in a decent non-burning speed through a bit like that. Only the bigger routers can deliver power like that.
And if you need a bigger router, probably in a router table ( a CMS in my case ) you would also want the spindle to be more stable, the bearings to have a larger diameter, the whole thing to be more bulky, and the whole system to have a bit more mass, for at the speeds a router is spinning, the mass is a very substantial factor in the dynamic stiffness.
That's where 12mm starts to make sense. The only problem is ( in my case ) that I'm gonna eventually need the OF2200 ..... and if you think Festool is expensive in the USA, try converting 1153 Euro's for the routerset with the accessories in Systainer plus 558 Euro's for the CMS insert - it won't fit my older Basis 5A that carries my OF1010.
1711 Euro's for the complete set. That's roughly 2400 US dollars..... 60+ years after the occupation and they're still looting....... ;-)
Needless to say, it won't be purchased within the next couple of weeks .....
Regards,
Job