A bit of threadomancy...
Played a bit of Dragon Rampant over Christmas with my WM figures. I went a bit bigger and went with 6 stands per unit. Removing 1 stand from cavalry for a wound, and marking the first wound on infantry before removing a stand.
I found I was generally leaving the stands pretty close together, to allow units to manoeuvre and to keep LoS for shooting. But in some situations I would shuffle the stands into a random formation.
One thing I kept forgetting, probably partially due to the ranked nature of the troops, was that units had 360º LoS.
It seemed to work fine - gave the feel of a small battle from the number of troops deployed. But did act rather more like a skirmish from some of the mechanisms.
I think it depends on the space you have to game - if you want to play on a smaller area then fewer stands enable that, if you have the space and figures then you can go for bigger units.