On the other hand, life might be harder for people who don't fit in well and then don't have anywhere else to socialize; the lack of privacy and constant gossip

On the other hand, life might be harder for people who don't fit in well and then don't have anywhere else to socialize; the lack of privacy and constant gossiping probably doesn't help either. I grew up in a 1000-people village (not on an island though) and experienced this to some extent, but would imagine this to be much worse in such tiny communities.