I read somewhere (sorry I can't find a source) that if you had say, six players, those six players would kill all he enemies in a given area too quickly. Making the game boring. And unfun for you and your friends. Also, if you have a six man team. Someone else has a six man team, 12 people in an area wouldn't be a lot of kills across the board. Hope this helps.
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That makes sense. Why not throw more enemies at the larger fireteams? Put them in their own background matchmaking so they only will see other large fireteams?
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I have limited answers, but, it could be done. Although, the whole issue of balance comes into play again. Does that really fix the problem?
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Ugh, stupid reasons... Each instance has a capacity for 16 people, they could just put people playing solo in instances without big fireteams