Yes, except 50 (or 70) is not where the system stops. Large guilds have it easier in the low- and mid-levels. The high level decay has not been overcome by a /single/ large guild yet. So, looking at the total range of levels the system favors:
* mid- to high-level range: large guilds
* high- to max-level: small /and/ active guilds.
Look at the current situation (and keep in mind not /every/ small guild consists exclusively of highly active players):
* small guild with mixed members (active and casuals) usually scrape around in the low to mid-level range
* large guilds with mixed members (actives and casuals) usually reach the upper mid-levels to high levels
* small guilds consisting mostly of very active members race the levels in record time and so far are the only ones to ever reach the cap.
* large guilds consisting mostly of very active members don't seem to exist.
What leads to this is the way decay is calculated and it is not only affecting large guilds. You have a guild consisting of 10 (RL) friends of which 5 are relative casual and only play for 3-4 days a week, the five active ones may soon hit a point where they no longer can compensate for the additional decay.
Large guilds have it easier initially; let's multiply above numbers by ten: 50 active players can rack up enough renown to manage pass the low (and often mid-level range), but as the decay increases they eventually hit a spot where they get stuck too.
Now there seems to be a trend of simply claiming large guilds get what they deserve and that's the price they pay for artificially bloating their numbers. However, there are other reasons too why a guild can grow large; for example family-friendly guilds who open their ranks to RL friends and family members without consideration of their DDO-experience or how much time they can devote to gaming.
You read the release notes of the guild renown system it specifically stated the highest levels are reserved for the most determined, most active players only. I sort of get the point. There have been numerous complains about how the game as become too easy and everyone can reach everything. There is nothing special reserved for powerplayers. Apparently Turbine decided to use this system to fill that void.
I just think they choose the exact wrong thing to fill that void. The two largest issues (and my main peeves) are:
* everyone who joins a guild is subject to the system. It's not like anything else in the game (ie: epics) that is easily avoided if you don't like it and even for those who do not consider guild level important it still is somewhat frustrating to be involved in something where you are always stuck at the same level.
* it's not fun being accused of "not carrying your own weight" or alone feeling like you are actively hurting your own guild only because you are in no position to play every single day.
* it actively discourages highly active (and therefor experienced) players to "guild-up" with members of the casual crowd to help them out since now there is a definite disadvantage to it (ending up with too many casual members in -guild to compensate for the additional decay)