> This means that the scale out part you guys are talking about are more for when you want geo located responses, such as having different datacenters in EU/US.
You can run with X instances on a deployment, and you can do so in one or more data centers. You can scale out in one data center or in multiple.
> I tried to turn up the instance count on one of the sites, and the result was that the management site (site/composite/top.aspx) didnt load properly. Maybe I was to fast to load the site before it had configured it correctly. (will try again and monitor the log files properly).
Please check the package description at http://docs.composite.net/Composite.Azure.Publisher - if you wish to scale out across multiple instances and/or data centers you use this package to publish from a staging site - you don't update via the live Azure sites in this setup. There is a graphic showing this concept in this PDF.
> Do that not mean that it is NOT SAFE to increase the count?
It is not safe if you plan to update content from those instances - there is currently no support for editing content directly on a multi instance Azure setup. This is where the staging/push model come in and make things work.