I agree with Kuroki. However, I will also say that I love low-man content and find it to not only be more fun but more challenging as well. Think CoP missions before they were nerfed. It is my opinion that Large endgame events only seems more epic due to the chaos. In my experience, it ends up being either a zerg fest or people endlessly throwing bodies at the mob til it dies. There is nothing epic or even remotely challenging about that. Sometimes Large-Scale content can be good, but the only examples I can think of are Besieged and Campaign. Now I will say that I would not want LSs to have a limit to members. Think of it more as different teams under the same flag. You could still have leadership, LS banks, strategy sessions, and call for back up in the event of an absence.
Here is my list of things that would be better: less drama, less being 40th in line for a sought after drop, less chaos, more challenge (especially with lower numbers which would decrease the margin of error), less ninja looting, less fair-weather LS mates that leave the min they get that uber drop, less canceling events because not enough show up, closer bonds due to smaller size, more synergy and coordination from working together, no more trying to get a large group of people to listen to a strategy session only to have it blow up in your face because someone was afk/not paying attention/wanted to play hero.