That's somewhat fair. It's certainly true that Wikimedia has a fair number of active projects that haven't had much of an impact. Apparently there have been at least some discussions of streamlining their work although organizations universally find it hard to avoid scope creep.

I'd point out though that, according to Wikipedia :-), the Internet Archive has a staff of about 200 so a few hundred employees/contractors doesn't seem out out of line as the baseline for a non-profit information infrastructure project.