Well it's the first title in hopefully many expansions. Of course its smaller. When FFXI first came out all it had was the 3 cities and the zones that led to jeuno. Didn't even have the beastmen strongholds. But Yoshi has already said they have the ability to add a lotta new zones and will between now and the first expansion. With that said if you played 1.0 in comparison the world seems a lot bigger than it used to be.
Gothos 75 SMN 75 WHM 68 COR 65SAM ~FFXI (Valefor)
80 Warlock - 80 Priest - 80 Shaman WoW (Moon Guard)