It's true! I recall when Ithaca, NY was named the best small city in the US. It took it years to recover from the sudden boom that destroyed many of the reasons it was rated so highly.
I spent most of my working career in a small town that hovered around 10-15,000. And I'm thrilled to be back on an island of comparable size. I like seeing someone you know every time you go to the store. Sure, it doesn't have all the big city amenities that Colorado had, but we rarely took advantage of those because traffic and parking were such nightmares.