I'd much rather have cities and towns with hundreds of NPCs than the ones in Skyrim with 20. With larger cities, you can still have those 20 NPCs all with unique quests, among the other NPCs. If anything it would make searching for them a game play mechanic in its own right.
DO NOT TRY ARGUING WITH ME I DO NOT CARE - FUCK OFF.
Oh, look. Someone is mad at the number of souls the dream-sleeve can process. "I think Mundus should be bigger and have more mortal souls". Shut up dude, are you going to create a whole new realm of existence just to add a few million more NPCs to existence. Maybe sacrifice your existence as a second Lorkhan... no? Then I don't need to hear it.