Many business models are at odds with the customer wishes.
Airlines want full planes. Customers don't want to be sardines and have bags checked for them.
Consumers hope that not everyone is using the Internet at 8 PM. The ISPs need over-subscription for their business model to succeed.
Cellular carriers want the radios on towers to be to capacity. The users want to be able to actually use their smartphones as advertised.
Restaurants need to be busy to make money (especially for the wait staff). Foodies hope that there isn't a line to get in at their favorite bistro. Others hope for a seat at the bar.
How does a business model succeed when it has to be full, cramped, stuffed, oversubscribed, which makes the customers miserable? Fact is in many cases the model doesn't work.
Look at airlines, how many have gone bankrupt or needed bailouts?
Restaurants have a large failure rate, even with a great chef.
When you are at odds with your customers' experience or expectations, scale (getting bigger) doesn't mean better at all.