You can use an air compressor for air-brushing no problem, you just have to set the regulator at a lower pressure.
The difference in size relates mainly to volume, not power. Most compressors can achieve pressures of 100 PSI no problem which is more than enough to run most pneumatic tools out there. Problem is if the tool requires a constant supply of pressure you may not be able to keep up with the demand. Air brushes require a relatively low pressure, Sand blasters would require a large volume of high pressure. Things like nail guns and staplers require high pressure, but very little volume. A small compressor would run a nail gun effectively, probably an air brush as well, but you may find that you are repressurizing the tank often, and would not run the sand blaster at all.
My advice would be to buy the biggest one you can. When it comes to compressed air, its always better to have it and not need it than need it and not have it.
Another thing to consider with small compressors is that every time you pressurize the tank, you create condensation. With a small tank that condensation is more likely to be forced through the air hose and into your tools. In the case of air-brushes and other painting tools, this could mean getting water into your finished product.
Steve