Smaller satellites implies smaller mirrors. The resolving power of a telescope depends on the diameter of its mirror. So you could have many small telescopes in orbit and only get fuzzy, unclear images, or one big one that delivers sharp images, and due to the mirror size is more sensitive to boot.
As for land-based, build a 100 meter mirror and scope and you will see.... nothing in infrared, which is what the JWST is designed for. The earth's atmosphere absorbs and re-radiates low infrared which means all you can really see is a sort of dull glow. Yes you can see stars, but the really faint light you want is drowned out by atmospheric emissions. That's why the JWST has to be kept so cold, because thermal emissions from the mirror would drown out any light signal from truly faint objects.