I think 5 full time toddlers of the same age is too much, but most of us have different ages.
This daycare is not a fit for them, that is biggest problem that I see in this situation. If it is not, then please call it off as fast as you can.
Personally, I cannot handle 30 people (adult and children) in my backyard during work time, too crowded for me to monitor my kids. Even in library visit, I keep counting my 3 little ones.
I enjoyed watching meet ups at the park with that many children, but I will still climb the slide to make sure none of the little ones get squeeze in between.
I did not follow much of this inquiry, thanks for posting. It is a very sad story.
Angie