Move Approval V

[Albert Wesker]

Blizzard: Approved with Area Attack.
[spoiler]The "3ft or less" thing is only for shields and area defence stuff. AoE effects do need area attack even if they're smaller (unless they're a fairly small size, like about as big as the exploding object).

Area Attack Proficiency – 600 OM

Allows you to create offensive moves with a wide area of effect, such an explosive that damages multiple enemies, or a beam wider than three feet in diameter. While the strength of wider attacks are diluted, or require more energy, they are very useful for dealing indiscriminate damage to a wider area and catching swift opponents. 

So, basically, projectiles or beams and whatnot larger than 3ft need area attack. But explosive things typically need it even if they're 3ft or smaller. In short: Area Attack is required for an attack if it has a target area larger than 3ft or if it can cause splash damage.
[/spoiler]

I'd just like to clarify this, because re-reading it I can see the confusion. The sticking point is the bit right after the explosion note, "inflicting moderate damage at its point of impact". That's all that does damage, is the impact itself, the explosion is just there because reasons and does nothing aside from look flashy.