The difference is primary in power consumption, heat, amount of raw material used to create each microchip and the number of microchips that can be create from a single silicon wafer.
Shrinking down the die size reduces the amount of raw material used to create each chip. Since the overall design is smaller, less electricity is needed to power the microchip. Less electricity means less heat which can also lead to higher clockrates. Due to the physical size being smaller, more microchips can be created from a single silicon wafer which means the cost to produce each individual microchip is reduced.