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I agree that you can be the biggest and the best, but I don't feel that the two must go hand in hand, or be mutually exclusive of each other. BoilingBaker is exactly right that on a campus with large chapters, no one percieves the small ones as competition...though they can sneak up on you, and occasionally pass you by (Example: My chapter went through reorg in 1996 - dropped from 86 to 13 members, and 7 years later won grades both semesters [Fall 3.443 and Spring 3.510] , won homecoming, Anchor Splash, and our numbers are back up to where they once were at 83 brothers strong.)
I think however if you recruit quality, you naturally limit the number of PNM's you are going to look at. If you say that we only want PNM's with at least 26 on their ACT's, a 3.5 HS GPA, and involvement in 6 things (or whatever your chapter decides for a definition of quality: looks/grades/involvement/partying/religion/etc.) then automatically there are going to be rushees who don't measure up. Put those definitions of quality so high and you may only have 1 or 5 or 10 rushees that have the right stuff. Obviously this limits the quanity.
The key is to find the proper balance. And keep in mind that not all chapters are striving for the same thing, nor are all rushees trying to be in "that" house. That I think is one of the best things about the greek system: you can find a house that fits you, no matter what your criteria are.
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