eg 77vAK
"Think of it this way. Heads up 77 is a slight favorite against AK - true. But now add a 3rd player. Give him QT for example. Now 77 has to dodge an A,K,Q or T or hit his set to win. AK is still basically going to win if he hits an A or K most of the time so the added player doesn't hurt him as much."
The assumption is that 77 (or lower) will most probably have to improve against a large field. Against isolated opponents it might not have to. The large field of opponents however might also give the 77 holder the proper odds to call and see the flop. (The odds against making a set on the flop are 8.3 : 1 , while against making at least a set, i.e. incl. boat, quads, the odds are 7.5 : 1)
So, as you say, the 77 has to "dodge" more hostile flop cards when against more than one opponent, but, generally, the middle-to-small pair is also closer to getting proper pot odds when the field gets larger. And having said that, I believe that the usual concluding caveat is that the rest is up to the specific conditions of the game, the deal and the round.
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