That's surprising. I woulda expected more support for 500 but I guess that's not a thing.
First, squadrons would be even more powerful, at 167? Imagine putting two more Bwings in a Yavaris list. for 11-12 squadrons.... I believe at that point, mathematically, you literally one shot EVERY small ship in one turn, including the mc30 which survives with like 2 hull vs 134 squads. I think it also starts opening up to one shooting mediums, you can kill AFs and possibly Victories in one turn with 167 bombers.
The time issue was the main reason I made Taskforce 200. It made it so much easier to play a short game in 45 minutes of Armada, get the full feeling of the game, and not have to literally plan out 3.5 hours of my time to play a 2 hour game, set up for 1 hour (it always ended up being that way) and tear down in a hurry.
It also made it easier to teach new players the game at its full complexity, but at a much smaller scale.
I really think even the current 2 hours is too long. Wish it was 1.5 hours, but I know realistically it takes some matches 2 hours to play.