Layout size and window size are two different things. The 16:9 (or every other ratio for that matter) that you mention, is related with the window size parameter. This is in effect the default screen resolution of your device. The topic "which dimensions or aspect ratio should I choose for my game" is debatable and has a lot of posts, with great suggestions already. Don't confuse the window size with the layout size. The latter is the overall size of your level and, in theory, can be...huge without performance penalties. What does affect performance are the number of objects that are displayed on the screen at the same time, their transparency level, particle systems, webGL effects and so on. Also, the the added texture size of all sprites on each level on devices with low memory capacity, will prove to be a major factor.