That's right. As the distance between transistors reduces, the clock speed can be increased and usually that increases the raw power of the microprocessor. That was the main tendency with desktop processors during the 80s and 90s. The other question is what to do with more transistors if you don't want to make them cheaper.
Now manufactures have reached a point of overheating the processors making microprocessors over 4GHz almost impractical because of power loses and the difficulties of cooling them. That's why now they are concentrating efforts to increase the number of CPUs running in parallel. Nevertheless having more than 6 processors does not achieve better performances with sequential codes, (I don't remember whose law is this) making this approach also impractical.
Personally I will like to star seeing processors more efficient that not require fans to cooling them making noiseless (I miss that aspect of my old 486).