I guess the impression that it should be capable of providing entertainment for hundreds of people comes from the fact that two starships visiting it posed so little visible trouble.
However, the station did call for aid when a Klingon ship appeared, despite said ship no doubt broadcasting messages of peace and benign intent in order to better complete her devious mission. And the result was that very small numbers of Klingons or
Federation personnel were allowed aboard. So perhaps this single bar was the only thing the station had to offer in terms of creature comforts after all? Perhaps having a hundred of anything suddenly appear on the station would mean ruination, regardless of whether they were Klingons or business friends of Cyrano Jones?
We might assume the station has no capabilities of starship maintenance or even small craft support, and is perhaps even dedicated to the logistical supporting of Sherman's Planet. What appears curious regarding that is the great number of portholes, suggesting an emphasis on accommodation in comfort, and also making it difficult to see where and how the logistics tasks could be handled. Why place all the cargo processing systems at the difficult-to-reach core of the station and cover them with porthole-equipped spaces?
We might also speculate that the station is mainly a dormitory of sorts for colonists waiting to settle on a planet that is only gradually being converted for habitation. Outside visitors might actually be quite rare.
About the only thing we can decisively rule out is a defensive role with armaments capable of standing up against starships...