Hello,
sorry I lost track of the question.
Does a smaller f0 mean greater frequency resolution in the processing?
Yes that is correct. Smaller F0 means you have more samples of the spectral envelope on the frequency axis and the frequency resolution the F0 and so smaller F0 means smaller step which is than higher resolution.
In fact this question is a bit confusing. You probably need to distinguish the F0 that is actually in the sound (so you cannot choose it anyway) and the F0 that you choose as a parameter to get a spectral envelope for a given sound. I will denote these as SndF0 and EnvF0.
So first the SndF0: the higher the pitch the lower the resolution. While you don’t hear this as a quality reduction (because you are used to it) in fact it is one and leads to problems in the perception. You probably know this effect from soprano singers for that you have difficulty to understand the text sung. A soprano sings so high that your perception does not manage to get the formant positions correctly which in urn hinders understanding.
Now the EnvF0. Here we try to find the formants the sampled filter envelope. We don’t do this for understanding (besides for example in text recognition) but for sound modification. If we use
EnvF0 == SndF0
The spectral envelope will gather all details that are available so you get best quality for all transformations. Let’s assume we want to do transposition. If we don’t transpose all errors will be compensate so it does not matter. If we transpose up the necessary resolution reduces so we have not lost anything and in a first approximation you don’t perceive problemes due to the sub sampling of the envelope. If you transpose down you would need more resolution to construct the features of a voice with the new pitch, you cannot get that and the sound will be perceived as strange. Most of the time this generates an effect that resembles as voice pronounced while pressing the nose with the fingers from both sides (you close the it). The more you transpose down from the original F0 the stronger will be the effect.
Now if you choose
EnvF0 > SndF0
Problems with the effect of the closed nose will start earlier and will be strong
if you want to be very clever and choose
EnvF0 < SndF0
So you want to extract more resolution than there is than you will get even more problems because the filter you estimate now encodes as well the partial positions (which it should not) and when you transpose (up or down) you will get additional timbre modulations depending on the transposition you choose.
Obviously, all these are only approximations, but it should be good to explaining the principle effects.
Best
Axel