What does the statement about the villagers indicate about their friendliness?

The statement indicates that, despite potentially having a smaller population, the villagers compensated for this by being exceptionally friendly. This suggests that their friendliness is a defining quality that enhances their social interactions and community spirit. Rather than focusing solely on the number of villagers, this answer highlights the importance of their warm and welcoming nature, which stands out as a positive trait in their interactions with others. The phrase "made up for" emphasizes that their warmth and friendliness are significant enough to overcome any perceived shortcomings related to their numbers, portraying them as a close-knit and hospitable community.