One of the biggest reasons I switched from Arma Life to GTA Life was that there was an ambient atmosphere of it being an actual city. That when I go down the road, it's not only the other 30 people in the server on the roads. That people can steal local vehicles, sell drugs to locals, and even interacting with them, even if they don't interact back. I think losing that ambience- that feeling of it actually being a city, and not some ghost town - would be bad. Car chases would just be races because theres no locals to avoid.
Unless I'm misunderstood on the topic of getting rid of AI, I would much rather a 32 server than a 50-70 server with no locals.