The order of inclusion of kernel configuration files causes meta/cfg/kernel-cache/arch/arm/arm.cfg.sanitized, which specifies CONFIG_CC_OPTIMIZE_FOR_SIZE=y, to occur before meta/cfg/kernel-cache/ktypes/standard/standard.cfg.sanitized, which specifies CONFIG_CC_OPTIMIZE_FOR_SIZE is undefined. The resulting configuration does not optimize for size. Per http://lists.openembedded.org/pipermail/openembedded-core/2013-August/082500.html this is unintentional and undesired.
By chance, I was already changing this as part of my 3.10 work. The order has been restored here, and when the dust settles, I'll send out the changes.
Resolved in master: 8b36aa4 linux-yocto/3.10: fix ssh login and restore CC_OPTIMIZE_FOR_SIZE