There is a difference between multi-chip and scalable multi-chip architectures.
Multi-chip, like rumors of the alleged 3dfx Sage/Fear combo, would have the advantage of being able to market multiple products. Say you have a VPU and the T&L Processor in a second chip. You can target two markets with the same chip design by having one product that only has the VPU, and another that has both the VPU and T&L processor.
The old Amiga PC's got around current technology limits in much the same way. By having a host of custom chips, they were able to make a system with a 7.14mhz CPU offer performance similar to 25mhz to 33mhz machines of their time by creating specialized chips to handle many of the tasks the main CPU was performing at the time in other systems.
For multi-chip/scalable- it's a pretty simple concept- when you hit the technological ceiling, you have to go wider to go faster. Scalable technology pretty much sets the limit of performance to the limit of your checkbook. If an architecture is truly scalable, the sky (and space in your case) truly is the limit.
The only *real* detriments to scalable architectures are: cost and space. The advantages are the ability to surpass the performance of the given technology level. There were many marketing projects to denounce scalable designs at around the time of the Voodoo5, so the majority of the bad mojo on the topic is just the result of overactive marketing weasels.
SGI, Sun, IBM and all the biggies have reached towards scalable graphics architectures for over a decade prior and done so with great success for pushing the next envelope earlier than anyone else.
Scalable technologies are generally made obsolete by future generations. After all, 3-5 years ago, a dual Pentium 90 server can now be far surpassed by a single P4 server. At the time, the Pentium 90 was the highest performing processor, so if you needed more power- ya had to add more. Quad Xeon servers today will likely be topped by some future single CPU model as well, but such speed just hasnt been reached on a single die yet.