I think this is a logical fallacy that crops up whenever games are being designed for a niche market in these days where the bland AAA "white bread" game is the standard. That targeting a niche audience automatically sets you up to "fail". Obviously SC is a bit of an outlier even in that regard because you have a small niche of people paying AAA budget, but generally speaking there is nothing wrong with setting a small budget appropriate to the scope of the market you are targeting. Pantheon doesn't have a large budget, but it's targeting those that want an oldschool EQ feel so it doesn't need one to be profitable.
Even games like Ultima Online are still going despite probably having 50k or less subscribers these days.

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