Cutting fleet numbers makes each remaining ship responsible for more tasks. More sensors, weapons, and other systems then have to fit into the individual hull, increasing its size and cost. The distinction is that a larger hull is not inherently what makes the ship expensive: the installed systems drive the increase. Further cuts made in response to that price leave fewer ships to carry the required capability, repeating the cycle.
Notable Point · 1:11:52-1:12:20
Installed systems drive the cost of the fleet-cut cycle
The closing recap distinguishes the cost of additional systems from hull size itself.