Of course, empires with more dense populations have more ability to dominate others, at least thanks to the variety of skills and the sheer mass of the population. There’s a reason why politicians work to increase population: It increases levied taxes. The system wouldn’t be balanced with stable population.
But even if we equate population with domination, is dominating the world what we want?
As for the “but they’ll pay your retirements!” argument, well, retirement-by-next-generation-paying is a pyramid scheme and the elderly should have thought of it before they set it up.