From an interesting article on the historicity of this event…
Though this deed certainly is in line with something Herod would do, the actual number is most likely not anywhere near what some traditions report (Martyrdom of Matthew reports 3,000, the Syrian tradition as high as 64,000!)
As the article states, “Professor William F. Albright, the dean of American archaeology in the Holy Land, estimates that the population of Bethlehem at the time of Jesus’ birth to be about 300 people (Albright and Mann 1971:19). The number of male children, two years old or younger, would be about six or seven (Maier 1998:178, footnote 25). This would hardly be a newsworthy event in light of what else was going on at the time.”
Please do not get me wrong, one innocent child being killed is a horrific tragedy, but I’m inclined to agree; we’re talking about a very small village here, not a major city - the reality just does not support the supposed numbers reported in many traditions.