I get the point on playing smaller venues, but it looks like most of you are confusing the term "small tours" with "small venues", those are very different things...
If MK wants to do small tours, I doubt very much he would do them in small venues, because he has lot of musicians, some quite expensive (the Nashville cats) and a lot of gear and crew. Economically it wouldn't work a small tour in small venues unless tickets are very expensive to cover the costs and gain money...
I can see easily a small tour but playing big arenas, as you can sale lots of tickets per night, and at the same time downscale the duration of the tour.
For example, in just one night playing at the O2 arena in London, he can sell more tickets that in three nights at the RAH, that means the same money, and two less dates...