With regards to the above image which was delivered as a slide in a Computer Vision course, I can't understand why this matrix multiplication is represented as a $4\times4$ * $4\times1$ where I feel as though the same result could be achieved with a $3\times3$ * $3\times1$.
Is there some missing information around this that y'all can shine some light on? I'm sure there must be some underlying reason.

This neat little trick makes computer graphics a lot easier to handle under the hood. Here is the gist of it:
Positions are four-dimensional vectors where the fourth component is $1$. Displacements (distances, velocities, etc.) are four-dimensional vectors where the fourth component is $0$. In other words, objects live not in $\Bbb R^3$, but in a hyperplane in $\Bbb R^4$, and displacements live in a distinct, parallel hyperplane of the same $\Bbb R^4$
Some consequences of this are: