Seth's Blog: The right size: "Ford Motor used to hire shepherds to tend Ford sheep on Ford land so they could weave Ford fabric to put on the seats of Ford cars. Today, of course, that's crazy. One day soon there will be car companies that have 200 employees."
It seems to come down to do anything for that thing's sake, is just insane. How big a company needs to be will change as the economy changes.
In the 1970's the US was the world's largest creditor and 20 years later we were the largest debtor. That was fast. The economy is distorted, but by how much and where is an issue. Taxes and regulations are certainly part of it, probably more so then the cheap labour offshore, but social attitudes as well.