You have to be careful making a blanket statement like that, I understand it's correct a lot of the time but not all of the time. A lot of larger amplifiers don't have internal fuses so they require you to fuse the power input line. If you have 1/0 and fuse according to the wire (~300A for good wire) but your amp calls for a 200A fuse, well then you could have a problem where the amplifier gets way too much current but the wire is still fine.
So basically, you fuse for the wire so long as your amplifier has it's own fusing, if it doesn't then you fuse for whatever the smaller value is (recommended amp fuse size or wire fuse size, but ideally the wire fuse size should be larger)