Having more nations involved means you can sell the television rights for more money in more countries. It's the same argument that was made when the World Cup was bloated to 32 teams at France 98. Now, countries like Slovenia, Israel and Ukraine all have a chance of making Euro 2000. If they do, they'll have just as much of a chance of winning as Japan, Jamaica or the United States had at France 98. Well, at the risk of sounding cheesy and trite like Baron de Coubertin, there is something to be said for participating.
Small countries do produce sublime talent.
George Best never played in the World Cup. Neither did Lajos Detari. Ryan Giggs will probably never play in the World Cup. Nor will Jari Litmanen or George Weah. By expanding the number of participants, we increase the number of stars.