There's definitely value to the smaller spaces too. It would be nice though if there were a larger one for when you want more interaction. But yeah, quality over quantity any day.
I haven't seen any real return to blogging, But I welcome the idea. I'd really like more of my interactions to take place in a space like this than somewhere that I'm extremely limited like Mastodon. (Because of the server I'm using,I need to change that.) I guess one could also handle the larger spaces with groups, I remember that used to be how it was done on Livejournal. It's always good to have options either way.