Do guilds themselves defeat the idea of massively multiplayer?

There's something I heard about mmorpgs - "Oh yeah, there are idiots, but if you get a good guild..."

Don't guilds actually destroy the idea of a mmorpg?

I mean, how many people do you have in your guild active when you are? Even in a really big guild, perhaps 200 or so? Most likely less?

And if the idea is that you stick with your 'good guild', then really your interacting with around 200 people or more likely, alot less.

That's hardly massive, is it?

It's a common desire in mmorpgs to have a guild - but it essentially removes the 'mm'.