I find the exact opposite. Sure, in a very small town you'll constantly recognize people and be constantly recognized. But you don't have a choice. There's little chance you'll find anyone who shares your interests, and there will be little chance of spontaneity. Everyone either does know you or will think they know you when they don't. There's a lot of social cohesion and apprehension. I find this really suffocating. In an urban environment I find it easier to socialize because I know that whoever I talk to doesn't have a lot of preconceptions about me.