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Still issues getting the heat out, but yes, GaN is pretty amazing. 10 years ago I was load pulling and matching sub 1 Ohm (24 mm) HFET die for 12 watts. Now you can get 120W in the same periphery.

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Packaging is indeed critical to get heat out. There have been some cool (no pun intended) developments on this front such as the DirectFET [1], LFPAK [2]

[1] http://www.irf.com/technical-info/whitepaper/directfet.pdf [2] http://www.nxp.com/documents/leaflet/939775016838_LR.pdf [3]

Interesting. I have never seen RF power parts in flip-chip, but I suppose there is no reason why they couldn't. Now Cree did have a 25W, 3 GHz FET in SO-8 package, which is kind of strange given package inductance, but they are have moved to QFN now.

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