Modern camera pixel density increasing?

Looking to find decent budget camera to replace my broken one. I'm noticing Pixel Density has increased since my Samsung S1050. It listed as 26 MP/cm^2, and took really nice shots at night -- I tend to photograph live music. I keep on looking at more recent cameras and am seeing much higher densities than that. In the past, anything over 30 MP/cm^2 seemed to not be able to get quality pics, but there's almost none of the recent cameras less than that, and I'm seeing what appears to be higher priced cameras going with densities above 40?!

What gives? Has the bar been raised such that 35 is the new 25 in terms of density? Or am I missing something, and the S1050 just had a very good color palette?

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