I don't see how more players can ever be a bad thing for a game. It brings mroe money to the devs, ensure more servers are running at any one time, increases the amount of mods and user-created levels floating around, and you also get more diverse views.
On the other hand, the small community is made up mostly of people with an interest in WWII and realistic combat, not just blasting stuff mindlessly. This helps ensure realism and accuracy trump gamey characteristics (well, most of the time).
Intersting thing to consider is that you are actually asking a question which cannot be answered from the situation we find ourselves in. We already have a small community, and this community is small to begin with for a variety of reasons. If it were to be larger, it would not be the same, and hence would not give the same answer to the question! We would not even be asking such questions for one thing.
It's like asking someone if they are happy being a human: most will say "Yes," because they simply are humans! To find themselves in another situation would alter the whole totality.
I am sure a lot of you don't follow my weird point...it's just philosophically the question of "Do you prefer a larger or smaller community?" is flawed and more or less useless considering the people answering are already the product of a set community to begin with.
