I'm impressed that you can even remember users from such a huge community.
I've been a long time member of /., first as a lurker, then finally posting a bit and getting more involved, but I only know the names there when I see them, not recalling them by heart like you do.
On HN it's fairly easy to recognize on sight a few hundred or so, and to be able to recall several 10's at least, but it feels more like a 'hackers village' than a city.
Right now I figure about 7500 active users on HN, but, again, my measuring methods are somewhat approximate so take that with a huge lump of salt.
If it grew to 'city scale' (say 50K+ active members) that feeling would completely change, most of the posts would be from members that you would not recognize.
It has occurred to me that it is very well possible that PGs strategy is based on keeping HN manageable, and to ruthlessly prune that which does not belong in the hedge is a pretty good way of achieving that.
Over time the quality should go up, not down if you keep at it consistently. Hard to tell if that's happening though, not sure what kind of metric you'd have to come up with to discount for the growth of the site vs the quality of the comments.
That's a pretty subjective issue.