Smaller venues within the 8-15k capacity range, absolutely I agree. Ironbark is just too small in it's current form. Maybe if they added bigger temp stands as well as stands behind each goal and push capacity to 7.5-8k, it would allow for more growth and more matchday revenue.
That being said, I don't think it matters anymore. I think too much damage has been done. It will be a big ask to get the already small number of fans they had to return. It was already a lets-wait-and-see attitude among WU fans, now the trust level is non existent. The only way I see fans returning is if actual progress is made on the proper stadium in some way or another.