I think it depends on the dog. I have a cavalier that I put smaller/thickness collars on. Also, some people feel small dogs (esp. cavaliers, chihuahuas, dachsunds) should wear harnesses. For a big dog, I would put a wider, stronger material so that they couldn't pull. A lot of bullie type dogs are very strong, so their collars are thick and most of the time made of leather. Sight hounds, and other dogs that have smaller heads than necks need martingale type collars so they can't back out of them. Some dog's tracheas are more susceptible to damage (like greyhounds, chihuahuas, etc.), so a softer and maybe wider collar might be of some help. I do think it depends on the individual dog. My favorite collars for my other dogs are limited slip collars in about 3/4" thickness.
I will have a harness on him (once i get one) when we go for walks out side but to just wear around the house and to go out side to pee pee do you think it matters? I am thinking of buying him a 1/2 inch leather colar and get a pretty charm to put on it with his name
Oh, jeez. I can't remember where I saw it, but a vet was describing the thickness of a collar should be somewhere along the lines of the thickness of one of their biggest (forgive my lack of terminology. Lumbar?) neck vertebra.
I think I would go no bigger than 3/8" to 4/8". So the collar you want sounds fine. A name tag is actually essential IMHO. Put your dogs info. on it. Is he microchipped? That helps, too. He is sooo cute!