MMOs are about socializing, and working with people, not necessarily a large amount of people though. I recently found a nice 20 man FC and my tiny FC "merged" with them, but I see no reason to exclude 5-10 man FCs. I loved my FC to death, and that's because I knew everyone incredibly well, I'm still trying to fit into this newer one, and it's going to take some time and even then I'm not going to be as close as to them due to the size (using an LS for old FC members). I see no reason to exclude the types of players from high end rewards just because they didn't join a large FC. In a social game, people should be able to choose who they socialize with.
