Hi,
The problem here is not the size of your feature class. In your example, you tried to publish a hosted tiled service, which means AGOL generates tiles for faster display. Generating tiles are very expensive (in credits), so it is recommended to use tile services only if you have large amount of data (features and vertices).
Instead of tile services you can use hosted feature services.
There is another way to create and publish tile services. For this you have to create tile packages in ArcGIS for Desktop and upload it to your AGOL account. In this case you don't use AGOL resources to create tiles, but your ArcGIS for Desktop.
To enable this option do the following:
- Go to Customize > ArcMap Options > Sharing
- Check the box next to "Enable ArcGIS Runtime Tools"
- Click OK
- Go to File > Share as > Tile Package
In the Tile Format box you have the opportunity to adjust the minimum scale.
After you uploaded the tile package (tpk) to your AGOL account, go to item properties in My Content and click on Publish.
I hope this could help.
Regards,
Akos