Unfortunately, you should have consulted with a neuroscientist rather than an astronomer. This illusion has nothing to do with astronomy. It also has nothing to do with any comparison with other objects on the horizon. Rather, it is due to the fact that the human brain has evolved to judge the distance of objects in the sky based on the fact that they are always relatively close to the surface of the earth. Thus in normal experience. A bird directly overhead is much, much closer than one at the same height that appears near the horizon. As a consequence, a bird that occupied the same angular portion of our field of view at the horizon as one directly overhead would rightly be perceived as much larger. Because the moon is so far away, it does actually occupy the same angular portion of our field of view no matter where it is in the sky. Thus, at the horizon, our brain thinks it must be much larger. This also explains why it seems to follow us as we travel in a car.
Unfortunately, you should have consulted with a neuroscientist rather than an astronomer. This illusion has nothing to do with astronomy. It also has nothing to do with any comparison with other objects on the horizon. Rather, it is due to the fact that the human brain has evolved to judge the distance of objects in the sky based on the fact that they are always relatively close to the surface of the earth. Thus in normal experience. A bird directly overhead is much, much closer than one at the same height that appears near the horizon. As a consequence, a bird that occupied the same angular portion of our field of view at the horizon as one directly overhead would rightly be perceived as much larger. Because the moon is so far away, it does actually occupy the same angular portion of our field of view no matter where it is in the sky. Thus, at the horizon, our brain thinks it must be much larger. This also explains why it seems to follow us as we travel in a car.