No way! Moon forever!
Utilitarian argument: You already stated, more people live on the Moon than on Earth. Therefore, the greatest potential happiness is to keep the moon people alive and awesome.
Scientific argument: If we destroyed the moon, the earth would be destroyed as well. From my limited research, the lack of a moon would eliminate the tides, killing everything that lives in the water. It would also throw the earth's rotation off balance, and we'd all be killed by natural disasters anyway.
Unscientific argument: Even after the moon blows up, Earth sounds pretty crappy.
Aesthetic argument: The moon is pretty.