For whatever it's worth, I've kept electric eels for sometime. Yes, they are very inactive for most of the time during the day. Mine were very active after the lights went out. I'd never keep a fish in a tank that wasn't wider than the fish is long. In my experience, if the fish is forced to touch the glass when turning around, then it doesn't have enough room. Again I see comments like "in the wild" vs "in captivity" for max size. I will repeat one of my favorite phrases:
If it doesn't get to it's full wild size in captivity, then you are doing something wrong.
The problem with this debate is that the entire aquarium hobby is about compromising the "best" conditions. You're still giving that eel a tiny fraction of it's natural roaming area even with a 500 gallon. Fish aren't "happy" or "sad" because they don't have freedom. Fish are happy when they are fed and healthy. As long as the fish is healthy and not deformed or injured, the aquarium is "big enough".
I'd counter that statement with a better one; If the fish doesn't breed in captivity, you are doing something wrong.
Anything less than completing a complete life-cycle, growing to full size and displaying all natural behaviour, including breeding, is a compromise on some level.
This hobby is about how much compromise is acceptable, balancing practicality with ethic/humane conditions. ALL tanks are too small, compared to wild environments, unless they cover the size area in the wild the fish utilizes. For instance, a wild Hemichromis fasciatus, while not a big fish compared to "tankbusters", has a territory of approx. 5 meters squared. Yet a 75 gallon tank is considered to be "big enough". Many Utaka cichlids create spawning pits several meters wide. They are prevented form doing this in aquariums, but there is no uproar about keeping cichlids in 50-100 gallon aquariums.
Yes a 180 is small for a 4 foot eel. So is 500 compared to river it lived in before being collected.