"the goal is to employ teachers and education of students is a welcome-but-unnecessary industrial byproduct"
For an example of this -- look at the amount of times the Student-to-Teacher ratio is brought up. Which is such an interesting statistic because it implies that time with a terrible teacher is preferable to having the good teachers handle a few more students.
No. It implies that in general having fewer students makes it easier to be a good teacher. And that being in a smaller class makes it easier to be a successful student. The importance of class size is well-supported by systematic reviews and meta-analyses.