It's more about quality than quantity
The whole point of a web directory is to get as many good quality links as possible. I think what devalues a link directory more than anything is the number of bad quality links. By bad quality I mean spam links and blatant advertising links from sites that don't really add any value to the web. This is why the top web directories, like DMOZ, have human editors and quality guidelines for them to follow. I think as long as you attain a decent quality of links and they are organized well, so visitors can find the sites relevant to their search, the more site links you have the more value your directory will have for searchers.
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