Don't worry, I managed to do a bit more research and finally got it to work.
This is what I did:
I went to the Google Chrome shortcut, right click, properties. Then under the Shortcut tab, in target, I typed in:
"...\Google\Chrome\Application\chrome.exe" --disk-cache-size=1 --media-cache-size=1
and voila, the cache and media cache folders don't fill up with webpages and grow anymore (but still contains some small info, not exceeding 1MB)
I think the trick was to apply both disk-cache-size and media-cache-size, but it also could be the fact that the parameter is set at "1".
I'll play around with it more, and hopefully get an update.