You are correct, less track points (more distance between points) will result in a shorter track. Just use TopoFusion to simplify a track and see the distance drop. However, when TF simplifies it removes the least significant points, so the effect will not be as pronounced as comparing a Magellan tracklog.
What you've noticed is one of the main reasons I don't like Magellan units. It's all about the tracklog for me, and I want as high resolution as possible.
There is a 'mathematical' explanation yes, but it also just makes sense. You could read up on sampling theory, but basically, the less samples you have, the less detail you are recording. The more sinuous your path (switchbacking trail) the more distance you will lose by only taking points at a set distance.
The Garmin units have an "auto" mode which is what I prefer to collect data at. It drops points when turns are made and also when speed changes. This is best for recording the path and also playing the track back.
Hope that helped.