It’s not good. We want decentralization so that nostr is censorship resistant. It’s better to have many smaller nodes.

The issue is that the clients don’t work well with a large number of small nodes. For example, Damus recommends 10 or fewer.

If you can only connect to a limited number of nodes, then you will choose the largest ones so that you can maximize your reach.

If everyone chooses the largest nodes, then we have increasing centralization… which isn’t good.