Totally UNSAT.
And dangerous, as well ... you just get in each others way and block the view. No wonder the LSO's need someone to watch line-up, etc., etc. Even discounting the accident potential when everyone is falling all over each other tryin' to escape the fireball or broken arresting gear wire whipping across the deck -- way too many people.
I suspect that the PLATFORM still has the same dimensions ... 
Professional, working PLATFORM population:
1. Controlling LSO (mebbe qual'ed, mebbe under training ...)
2. Air Wing LSO (supervisory/"controlling" in reality ...)
3. Book writer (LSO under training ...)
4. Phone talker (EM from the Air Department ...)
5. Observer (mebbe ....)
6. Observer (mebbe ....)
That's it -- usually shrink the "observers" by one @ night.
While I agree to an extent on your observation, more people = more potential for mishap casualties, the "min crew" on a platform will still be at least 3, but never for a full cyclic recovery. Mainly for a bag ex and or "LSO proficiency" as we like to call it.
As for fleet operations, every recovery will include:
1. Controlling (obviously)
2. Backup (in charge of lineup / WOD / Gear and lense settings / glidelope)
3. CAG paddles (supervising and making sure 1 and 2 don't kill anyone)
4. Writer (junior typically to learn)
5. Deck caller (100 ft / 10 ft window determination to aviod another S-3 / Prowler incident)
6. Groove timer / observer. (Day only)
7. Observer
8. Girl from reactor division for date night (optional)
Obviously 6 and 7 are not necessary, taking the platform down to 5 (not including the 2 enlisted)
The reason we rarely kick the 6 and 7 off though is because they are part of the wave team and are there to learn or if senior to back up the rookies controlling / etc.
RAG / TRACOM CQ dets are a whole different story and it is like a parade in a phone booth up there. We could definitely bring those numbers down a bit, but typically you will have at least 2 LSO's from every squadron flying up there.
Overall, good or bad, the tendancy is to get LSO's as much "eye" exposure on the platform as possible and to use every recovery on a wave day to train. Safe or stupid, the nights that are most difficult is when the peanut gallery is learning the most. I have found that the peanut gallery is not the ones getting in the way of the LSO's view. The Prowler on the finger is the main culprit there!
