Well I think install counts should be viewed more like a percentage relative to other mods install counts.
My biggest problem is that few people install mods which I think are great while other not so great mods have high install counts. The market place here is hard to please for me, I'm not sure what kinds of people I'm dealing with, if they rather have pretty flashy things to good functionality. Also I don't like how my mods are quickly buried under an avalanche of threads, never again to be seen. I wonder how some people are able to find them and install them.
There was an interesting point in this topic, that Mark As Installed should be Get Updates. I think changing it would help having a more precise install count. It would also remove the feeling that install counts are actually the precise number of people that installed.
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