Agreed. For more than one reason, and from personal experience. I've had both, a crew of code monkeys and a small but incredibly efficient team of well paid but also very good programmers. To say that the latter were vastly outperforming the former (for less money in total, too) is an understatement.
Two people doing each 50% of work will not compensate for one person who could do 100%. Simply due to a lack of information. One person has, by design, all the information that person has. This is not true for two people who should do this one person's work instead. They have to synchronize and exchange information, and that invariably fails at some level as we all know, where you either lose efficiency by having to design an interface between these people or, lacking this, lose even more efficiency when their interface just doesn't work out.
In the end, you're better off with FEWER, but BETTER people than you could ever be with a truckload of code monkeys. Yes, even if they cost a multiple of the monkeys. A billion code monkeys with keyboards will never write the better OS.