What is the benefit of more, smaller rotor blades over fewer, larger ones? I thought that the area of air that the blades worked on scaled with pi-r-squared, which favours fewer larger rotor blades, as seen on most helicopters?
Coaxial counterrotating rotors, as here, have two further advantages:
1. they're much more efficient, as less energy is converted into (useless) air rotation.
2. in forward flight, one side of the rotor "sees" higher relative speed, thus extra lift, while the receding side sees less lift. That's cancelled out by the counterrotating rotor above.
Generally, larger diameters are good for hover performance and better autorotation, though autorotation is not really a factor for this design.
EDIT to add: Note that the total disc size of one large rotor is of course the same as the one of 4 smaller ones with half the radius.