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Messes with timing, among other things. A lot of those structures are relatively fixed blocks that are designed for specific sizes. Signals take more time to propagate longer distances, and longer conductors have worse properties. Dense and hot is faster and more broadly useful.

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Interesting, so does that mean we're basically out of runway without aggressive cooling?

No.

Every successive semiconductor node uses less power than the previous per transistor at the same clock speed. Its just that we then immediately use this headroom to pack more transistors closer and run them faster, so every chip keeps running into power limits, even if they continually do more with said power.

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