OK, this isn't speficially about coffee mugs, it's about perception. Stay with me, there are lessons for entrepreneurs, but first you should play the game.
Take your favorite mug. Look at it closely, and imagine wrapping a piece of string around it once. Now image taking that piece of string and holding one end against the base. How high will it reach?
As high as the rim? 20% higher? 60% higher? Take the time to try to visualise it.
Now do it.
If the result surprises you, then you've got something from this exercise. But if not, read on.
Now go and try it on people you know, or people you don't know if you have the courage. See what they think. See if they're surprised by this result.
I pretty much guarantee that they will be. And if you weren't, it serves as a reminder that your customers aren't you!
It doesn't matter if you like your product, or think it's usable, or think it's great. What matters is your customers opinions, not yours.
Of course, it helps if you like what you sell.
Don't get me wrong, I think this inability to spatially relate height and circumference is interesting. And I think it's interesting that customers view products differently than designers. I just don't think the two ideas are related in even the slightest way.