The analogy I often use when talking about orchids and repotting is this: if your foot measures for a size 10 shoe, would you purchase size13? No because it is too big for your foot. The reverse is also a bad idea. For a size 10 foot, I would not buy a size 5 shoe either!
The size of the proper container for a particular orchid depends upon the living root system, not the amount of leaves and psuedobulbs. The appropriate size pot allows for the plant to be properly grown and watered. A pot that is either too big or too small leads to improper watering intervals. You end up watering too much or not enough.
The key with growing orchids is a live and healthy root system.
In your wire basket container your plant may require a four inch pot, and that appears to be a 16" basket +/-. This is WAY TO BIG.
Not forgetting about the insect foraging on your Orchid but in general: healthy, well grown orchids are better able to fend off insect attacks because they produce healthier and heavier leaves bulbs and roots. Improper potting leads to weaker plant tissue, softer more succulent growth leading to greater incidences of insect attack.
