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If you only play solo or with your friends, then yes, a 4 person lobby would would be all that's required.
Not everyone wants to play solo OR has a group to play with though which is why public lobbies exist.
As you can probably imagine being able to join a room with around a 100 other players would make it much easier to find other folks to hunt with. Additionally since hunts are posted to the quest board automatically and people can join in-progress hunts without being directly invited (as there is no longer a load screen between hub and hunt area in Wilds) the entire process is way more seamless than it was previous games.
Additional players on your screen are just extra CPU and GPU resources in a game that runs like a steaming pile of doo doo even on hardware above the recommended.
At least that was my observation in first beta.