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That's very good and actual question. According to my observation sites may have a lot of content, but when most of it is low quality, then it will rank overall low. On the other hand small site where all subpages have at least 50 words per post ranks even without incoming links.
I have also tried to not only add more text, but edit some (not all) old posts (add more text, categorize it better and deleted wrong tags) and within 2 days Google noticed it and gave me more organic traffic. It had stable organic traffic for months before this change.
So i say quality.
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