It increases it.
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You can divide any shape into smaller pieces so that all pieces have the same surface area. However, you can no longer divide an arbitrary shape (including an ellipse) into smaller pieces so that all pieces have the same shape.
0.206 is smaller than 0.214 since 206/1000 is less than 214/1000, in one case you are dividing a thing into 1000 equal parts and taking 206 pieces and in the other case you are dividing the same thing into 1000 equal parts but taking 214 pieces (206 is smaller than 214)
A subdivision is the act of dividing land, usually into smaller pieces which are easier to sell or develop, rather than one very large piece. Subdivisions are usually used for housing or residential communities.
The size of the square doesn't depend on how many pieces you cut it into. The more pieces it's divided into, the smaller the pieces have to be, but the whole thing is still the same four-inch square. If you could make something bigger by dividing it into more pieces, we'd all be buying steaks and roasts and making ground beef at home.
Smaller