Generating any amount of pages is fine, its the quality of the pages that is the issue.
If you fuck up and have 10-15 poor pages its one thing, but if you fuck up and have 10,000 shitty ones, its obviously going to devalue your site.
If you can keep them all unique, relevant, and actually seem like that many pages is needed, then you will be ok. They will not punish anyone for being too big or growing to fast, its the other factors that will crush you.
Basically I would say having tons of pages as fine, as long as that many pages is needed to show or display your content. But generating pages just to have pages is silly and most of the time will just create disasters out of simple mistakes.
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