I recently watched a video Matt Cutts of Google produced regarding the importance content versus the importance of links for your website. He basically said that if you build a one million paged website that only has two sites linking to it, most of the pages of the one million paged website would not get crawled by Google, and that the site would not be considered an authority site by Google.
Those statements shoot holes in the theory that if you build a large enough website, it will be considered an authority site by Google. The fact is that you need backlinks to your website in order to gain authority.
You need to be balanced in your use of this information, though. If all you build are one page websites, you are not likely to get many return visitors to your sites. One page websites give very little reason for visitor to return. They are also very unlikely to generate links from other websites without you having to build them.
A good overall strategy is to build medium to large websites and build as many links to them as possible. Make sure you have enough interesting content that people would be likely to come back and/or recommend the website to like-minded friends. With that strategy you can create a regular customer base, while building enough link strength to increase your Google rankings. The Google rankings, in turn, help you expand your customer base even more.