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I’m not familar with a bezel setting………?

I would definatly say YES. It makes it look very small because it is inset.
Take a look:

While a bezel set stone is going to look a little smaller, there are advantages that the design has over prong set rings. Bezel settings are VERY secure–important if you plan on wearing the ring while you work with your hands. Prongs catch on things as well–I once scratched my baby with my ring–accidentally of course, but felt horrible!!! It’s ultimately your decision.

Well, I don’t like this at all.
HOWEVER, go with whatever your bf chooses for you!

In my opinion, no, but it depends on the size of the diamond.
Mine is a bezel & I love it bc I won’t have to worry about ever losing the diamond. Plus, it allows the stone to sit more flushed with the rest of the setting vs. it being raised above the rest of the band. I got a larger diamond and set it lower…..plus this way it won’t snag on things!!!