Is it such few quotas? In 470 we have 12 and 14 quotas for nations based on the 2018 and 2019 World Championships, not to mention that not all of the continent/host quotas are "wasted." At this point any nation of note should have qualified. The Olympics tries to achieve a balance between strength and diversity, it's the reason why we don't have a hundred Kenyans/Ethiopians running in the marathon or in sailing's case multiple entrants from the same country. In the end, the 19th/21st ranked nation and Angola have the same chance at winning a medal so I'd rather have the diversity.
Free quotas in some events are an unfortunate result and while I'm not entirely opposed to a rule that there must be at least 2-3 eligible nations competing, but in sailing it would be hard to implement. Canada/United States and Australia/New Zealand have enough pull to argue for diversity even though it also benefits them. Obviously Asia and Africa would be against it too and I doubt Europe will push too hard as to avoid being accused of making the Olympics "too Euro-centric"