I agree with AlphaXi that numbers matter to a certain point. If everyone has to hold 5 offices, things just plain get too stressful, especially if you're a national and are required to have a certain number of offices filled. It is easier to throw events with 40 people instead of 10.
However, 35 girls is a good size, irregardless of how big the other chapters are. I personally wouldn't want to be in a chapter larger than 50 people (definitely NOT KNOCKING people in larger groups... I work better in smaller groups, hence why I went to a school with only 2000 undergrads), and my chapter has 37 returning for Formal Recruitment.
Be proud of your chapter SDTSarah. People like MTSUGURL (who continually impresses me with her maturity... God I wish there was an Alpha Phi chapter at MTSU!) know what's up. If someone bashes you for being small, other people will hear it, and think poorly of them.
I hear you on the newspaper making fun of Greek intramural teams though.
People rip on my sorority and my boyfriend's fraternity because we don't emphasize athletics as much as other groups, and it hurts sometimes. However, I like to think that we're a lot more well-rounded, as you probably are too!