Sorry about the capitalization issue. I'll try to keep this in mind.
I think this could still be subtle: buildings would look like they're merged, but they really are filling the multidimensional space that does exist and that we don't see. Maybe the idea of Sigil expanding is better. But I don't see any reason for the three ideas (Sigil expanded, merged buildings and multidimensional space filling) to coexist.
Actually, wgar, 2e Sigil has the same shape as 3e Sigil-a Torus (donut-shaped with inward-facing opening) with the Cage on the inside.
Also, Sigil tends to keep all the extra-dimensional stuff subtle so that a berk can always second-guess himself as to when it happens ("I could've sworn that street used to be longer"). The only time it gets obvious is for the Sod who just got mazed.
(ps: Capitalization really helps when you're making writing complex statements)