The energy in a fusion reaction is split between the charged particles and neutrons which result from the reaction. Most of the energy is carried away by neutrons since they have no charge they are not confined. The energy of the charged particles goes to heating (or keeping) the plasma hot. Having more a better volume(heating)/surface(cooling) ratio helps keep the plasma hot without needing extra energy from outside.
Similar results can be achieved with improved confinement so that you can get a higher particle density in the same volume. IE more particles in same volume= more reaction = more heat produced for roughly the same rate of cooling.