bobegler - You need to decide what air pressure you need at the other end of the system. If you're starting off with a 70 PSIG inlet, and you need 69 PSIG at the outlet 500 feet away, you won't get many CFMs. If you need 50 PSIG at the point of use, and it's only 25 feet away, you can stuff a lot more CFMs down that 3" line.
It's a balancing act. If you move the air too quickly, then any moisture and/or oil in the air won't be able to drop out. This is in addition to needing a LOT more power at the compressor to provide a higher initial pressure. If you decide on a very low pressure drop on a long line, you may have a relatively big pipe for a small load. The correct choice is usually somewhere in the middle. If it's a process plant, I usually find the appropriate line size, then go up one size. Production people are always adding things, and moving equipment around.
Determine what it is you want to have happen at the end of the line, then work backwards from that point.