Are we seriously bitching over how many people are in a room? I guess we all forgot how much of a graphical leap GTA4 has over SA.
When GTA4 comes out on the PC and can have "100-200" people per sever with everything like police, traffic, dynamic weather, and pedestrians on max, then you can bitch about the low number on consoles.
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GTA IV online is fun, but its true the rooms are pretty small (if you play in the entire city, or one of the bigger parts) and the overall layout is frankly a pig pile of shit....there is no lobby and it's kinda hard to make your own room. They have to work on that, but first please fix the lag -.-. Before they don't do that 100-200 players would simply crash the servers again (screw you gamespy!).
Other than that it's really fun and of course, singleplayer is epic.
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Are you playing the PS3 version? The 360 version is flawless other then shit hosts on dial-up.