Yes ^, but I am mostly about the reserves that allow you to digest losses and I am about that even the most capable ship canot be in more than just one places at a time. Same is true for fighters, submarines, ground units... Superiority in technology and skill can compensate for being outnumbered or needing to cover a too big playground only so far - and not further.
And then there is the downtime of systems due to maintenace and servicing and repairs.
On global population and ecological and sustainable ressource management issues I usually say "We are too many", but on Western military numbers I say "We are too few".
Then - leaving the frame of this topic a bit, but just to complete this one point of "too small numbers" - inter-dependencies in supply chains due to globalization of economies - a nightmare. A pest of a misled financial supply system impacting on nations' ability to even just sustain bigger militaries (they cannot anymore, obviously). There will come a time in this century when the global security and stability situation will seriously topple. The political situation already is in decline, regarding stability and military risks.
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If you feel nuts, consult an expert.
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