Actually isn’t part of the story supposed to be that the galactic Senate is corrupt and incompetent?
I think he was being, mmm, sarcastic isn’t quite the right word, but he was certainly attempting to draw attention to the pitfalls of the idea with the reference. 
You’re going to need a bigger Capitol.
The main reason they limited the size of the House is that there’s only so much room in the House chamber. If they increase the number of Representatives, they’ll either have to cram everyone in like coach class airline seats, or build an addition onto the chamber. I have no idea if they can do the latter, but I suspect not.
Cite? :dubious:
And even if true, not so much of a factor now with the ability to telecommute.