This is strictly a content issue. I wouldn't apply demerits to the concept based on the selection of content available.
It should expand, but forced limitations on available content make sense -- it concentrates students into "rooms" while the site's traction is still light, allowing the desired levels of collaboration to come to fruition. Too much content while the site is small risks running only one or two students per room, which keeps the true purpose of the site from showing itself and may even defeat the concept before it has a chance to thrive.
It should expand, but forced limitations on available content make sense -- it concentrates students into "rooms" while the site's traction is still light, allowing the desired levels of collaboration to come to fruition. Too much content while the site is small risks running only one or two students per room, which keeps the true purpose of the site from showing itself and may even defeat the concept before it has a chance to thrive.