In general this is a very subtle issue and note trivial whatsoever. I encourage you to read mysqlperformanceblog.com and High Performance MySQL. I really think there is no general answer for this.
I'm working on a project which has a MySQL database with almost 1TB of data. The most important scalability factor is RAM. If the indexes of your tables fit into memory and your queries are highly optimized, you can serve a reasonable amount of requests with a average machine.
The number of records do matter, depending of how your tables look like. It's a difference to have a lot of varchar fields or only a couple of ints or longs.
The physical size of the database matters as well: think of backups, for instance. Depending on your engine, your physical db files on grow, but don't shrink, for instance with innodb. So deleting a lot of rows, doesn't help to shrink your physical files.
There's a lot to this issues and as in a lot of cases the devil is in the details.
FDX5BX3