Your situaton is why all the home daycares in my region have gone out of business or to birth to four, only (myself included).
The general consensus is that very young children benefit from a home based setting while older toddlers benefit from a larger, more institutional setting "in preparation for school".
Whether you agree with it or not, it is the current trend of the daycare industry.
It is also why McDonalds will always be more profitable than Whole Foods.
IMHO, That is easy, cheap, access.
With childcare, we also have media spin based on "studies" funded by employers to help employees rationalize the decision. It equates to fewer lost work days for employers. Especially now that many here are required to offer "sick care" for "common child illness".

You may need to do a quick market survey of your area to decide the right path to follow.

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