is there some technical reason why there must not be too many blocks / they must have a minimum size?

otherwise it seems to me it is a shortfall of bitcoin's design that so few blocks (1 in 10 minutes) are created and the reward is very high.
if generating blocks was easier (with less reward) there would be less incentive for pooling.
I guess(!) satoshi originally intended that each bitcoin client mines, not some large pools with high-end graphics cards.

if bitcoin is as successful as many here suspect, in a few years the 25 BTC you gain from generating a block will be like winning a lottery jackpot.