Why many small files instead of few large ones?
I have read that Org favours the latter method. If true, I strongly disagree with it because of the implicit dependency it introduces and the way it favours machine-friendliness over human-readability in terms of accessing information. Notes are long-term storage. I might want to access them on (i) some device with limited features, (ii) print on paper, (iii) share with another person who is not a tech wizard.
There are good arguments for few large files, but all either prioritize machine-friendliness or presuppose the use of sophisticated tools like Emacs+Org.
Good luck using ‘less’ on a generic TTY to read a file with a zillion words, headings, sub-headings, sub-sub-headings, property drawers, and other constructs! You will not get the otherwise wonderful folding of headings the way you do in Emacs—do not take such features for granted.
My point is that notes should be atomic to help the user—and potentially the user’s family, friends, acquaintances—make sense of them in a wide range of scenaria. The more program-agnostic your file is, the better for you and/or everyone else you might share your writings with.
Human-readability means that we optimize for what matters to us. If (a) you are the only one who will ever read your notes, (b) always have access to good software like Emacs+Org, (c) do not care about printing on paper, then Denote’s model is not for you. Maybe you need to tweak some org-capture template to append a new entry to one mega file (I do that for my Org agenda, by the way, as I explained before about using the right tool for the job).