Which is it better: one large page with many links or many smaller pages with less links?
It depends on the focus of a website. If it's immediately clear that a collection of links belong together, the reader will accept a list of links. If, like certain portal sites, there are just loads of links scattered randomly around the page, no-one will be able to find anything.
There is a rule of thumb that says you should never be more than 3 clicks away from the page you're trying to reach on any site. Although this does not mean that every page needs to link to every other page on your website - this tends to lead to link overload and visitors tend to find ways of reducing the number of links they have to think about - typically this involves using the back button to go back to a page that has less links that are more relevant to their needs.