Although I think they overdid it. TNG has a 30-40 ship battle at Wolf 359 and this is supposed to be a big deal, but then in DS9 we have a 600-strong UFP/Klingon fleet at some point. It's awesome, but a bit exaggerated, imo.
The federation is meant to be HUGE. So starfleet I always thought must of been pretty big.
The wolf 359 was only as small as it was in my opinion beacuse the federation got caught by surprise and underestimated the borg.
Plus the battle I dont think was in TNG only its aftermath. The battle was only shown in the first episoide of DS9.