Going for more scale incrementally makes sense, but gets you stuck in local maxima.

Going for less scale than today almost never does.

Companies walk up the scale ladder until they're trapped with a local maxima.

The good enough product for the largest market they could reach from their starting point.

But now they are stuck, and have nowhere to go from there.

You can only adapt when you change, and if you can't change without going down the hill, you don't adapt.

Without adaptation, at some point the environment changes and you die, stranded on your local maxima mountain.