Well, two kids who went to isolated schools that I know both COMPLAINED about the close-knit nature of their respective schools. It’s fine if you like the social scene. If you don’t, there aren’t many options!
“Incestuous” is also a word often used to describe the social scene at a remote midwestern LAC attended by the daughter of a friend of mine. She thought that was a drawback.
But - both these kids admit they got great, individualized educations. Something for something, I suppose.