I think the exact mechanism of DNA coding and evolution is probably a fair bit more complex.
Take the so called C-value enigma
http://en.wikipedia.org/wiki/C-value_paradox
The size of the genome does not necessarily match the complexity of an organism.
For example there's an african Lungfish with a genome size 132pg compared to our measley 3.5.
Up to 97% of our DNA seems to have no purpose so called Junk DNA.
It would apppear that evolution may be slowly optimising the size of DNA in species as well.