A larger file or a less-compressed file or a file with a higher bit rate (all of those are functionally equivalent) doesn't necessarily mean a better looking video once uploaded. Practically speaking, a video that has better visual acuity will look better once YouTube runs it through the ringer. My 1080p uploads to YouTube typically hover in the 10-12Mbps range, but they tend to be low motion videos, so they compress well. If you've got a busy video, it may be necessary to crank the bit rate up until you preserve most or at least more of the image fidelity. However, you'll reach a point where you'll just be making a file needlessly large, with no perceptible difference once YouTube does its dance on your video. I would guess that 25Mbps is needlessly high; the recommendation to use 15Mbps or thereabouts is probably sufficient. Testing is the only sure way to know, as there are no hard-and-fast rules when it comes to video encoding--and YouTube takes any of the general accepted practices and dumps them on their head.
Re: target and maximum bit rate: these come into play when using encoders that employ variable bit rate (VBR) encoding. Target bit rate--like its name suggests--is the bit rate that you want the encoder to shoot for, and use as a relative average. Maximum bit rate--no points for guessing--is the greatest bit rate that you will let the encoder use in segments (typically in divisions called GOPs or groups of pictures) where there is motion or greater visual complexity (highly detailed patterns, or fog, for example). If the encoder was to run full tilt boogie, the maximum bit rate would determine the size of the file; this is roughly equivalent to using CBR or constant bit rate encoding. However, because you've selected a target bit rate (typically, some modicum below the maximum bit rate), the encoder will do its best to maintain that bit rate or lower throughout the video. As an example, my 1080p H.264 encodes for YouTube usually have a maximum bit rate of around 15Mbps, but I set the target at 10Mbps or less. Using 2-pass VBR, and given the nature of the videos I most often encode, my files usually average around 6Mbps. That's what I mean about treating each separate encode as its own entity--you can apply some principles, but in practice, anything goes.
These Wikipedia articles might offer some interesting insights into the various encoding methods, at least from a bitrate standpoint:
Variable bitrate
Constant bitrate
Average bitrate
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