I think it all depends on the initial goal of the server. Years ago I created a private server for mostly an out-of-the-box PEQ experience for friends only.
After a long hiatus I recently resurrected the server but opened it up for the public to join. To me it doesn't matter if there's 400 people on or 4. My goal was primarily getting old, mostly former EQ friends back together at their convenience. And I always enjoy a new friendly player.
I receive the occasional suggestion on server improvement which I'm okay with. However, my time is limited as is my knowledge how to do more advanced things on the server so I have to weigh those options.
In my opinion the high server populations are not always the best.
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