On the other side of the coin, some people claim the the larger State is not responsive to their group as some other group members enjoy inordinate powers in the bigger State. This is the main complaint of Telangana State residents who feel Andhra residents take up all the jobs at the expense of Telangana people.
Generally, the conventional wisdom is that smaller administrative units are more responsive to the needs of the people, universally.
I guess the debate will go on. A lot depends on how the people of telangana vote on the issue. If BJP wins, Telangana may become a reality. Historically, Telangana use to be a separate State in its own right.