Scale Ruins Everything

To be honest, you could say this about capitalism in general. Everything has to be huge no matter what industry it's in or what the product is, just because shareholders demand that impossible infinite growth.

I think this could largely be an issue with public or VC/PE funded companies. There's plenty of private companies of small/mid size that make plenty of money but don't feel a need to grow excessively. You could think of the local plumbing company, or a small boutique consulting firm. They want to grow, but there's a natural barrier that's hard to cross without becoming a very large company and changing the nature of the company that the owner may be enjoying.

I have always wondered how that would apply to software companies though. If you make something that works really well and everyone wants to buy it, you could grow fairly large financially without needing a ton of people if you just focus on that one program that makes you successful. I imagine it's hard to not feel a need to scale up dramatically when you have millions of users/customers asking for new features.