Working on an areal density works better in an era where improvements are going closer to linear.
Additionally, the number of defects is proportional to the area. The bigger your chip, the more chips you will have to throw away because of defects. E.g. say you have one defect per wafer on average, if your chip takes up the whole wafer, you will have no good chips. If you can fit 100 chips on one wafer, you will have 99 good ones and one bad one.
you also don't need to double the die size just double the size of the package (what AMD seem to have done), that way you can swap broken dies out.
AMD are shipping multi-chip modules with ThreadRipper (with two die) and EPYC (with four), and then because they are separate die you can trivially swap them out.
I think the number of transitors per unit area would be better. Though advanced applications mess with transistor sizes too, the situation would be better than gates.
https://www.nature.com/nnano/journal/v7/n7/full/nnano.2012.9...