It's been a long voiced tenet of MMA that losses are bound to occur with more frequency and even Dana White himself was known to say so before that one time where it didn't suit him and then all of a sudden a fighter is shit as soon as he gets beat, until the next time when the opposite suits him again. Piece of shit.
A good post above provided the main reasons, i.e. fewer participants means less of an amateur scene and more rematches, and there are many more ways to lose. Fans who don't have their heads up their asses generally accept that even that fighter you love to hate doesn't suddenly become a can just because he lost 1 fight. The "only as good as your last fight" crowd are generally more prone to falling for UFC hype/wolf tickets, imo.