Yes. It also allows the game to flow more like a ramp than stairs. The more smaller intervals we have the less impact any particular building has. Which simulates the game flowing rather than great leaps each time a building is made.
Also small changes allow for greater possibilities to unlock other buildings and even have synergy of buildings. And when it comes down to it there are only so many things in the game that buildings can give you (ex.

,

,

,

,

,

,

,

,

, etc) and even as we had properties like crime or disease they still are just extensions of those basic factors. However I think there is one factor that should not be underestimated and that is the players
imagination.
You see we cannot make everything perfect but we can allow for the player's imagination to fill in the gaps. An icon/button of a building can be all that's needed for someone to imagine their city has a Wig Shop despite their not being any wig resource or 3D model of a wig shop. I have seen in numerous let's plays that players enjoy these little details that make the game seem more alive. For instance despite not having that bad of stats some players refused to build a Crusifiction Cross because of its real life implications. Likewise I have seen other players love making a Cheese Shop just because they love cheese in RL. This type of things cannot be underestimated when it comes to the game. It might not make logical sense to an AI but makes all the difference to a human player.