lionelhill,
I get that you don't care whether the rectangle with area 4 is represented by a 1x4 block or a 2x2 block, but I'm suggesting that both would need to be considered.
So, the progression would be more like
1(1x1), 2(1x2), 3(1x3), 4(1x4), 4(2x2), 5(1x5), 6(1x6), 6(2x3), 7(1x7), 8(1x8), 8(2x4), 9(1x9), 9(3x3), 10(1x10), 10(2x5), 11(1x11), 12(1x12), 12(2x6), 12(3x4)...
or
1, 2, 3, 4, 4, 5, 6, 6, 7, 8, 8, 9, 9, 10, 10, 11, 12, 12, 12, ...
Otherwise, you could end up with an area 10 block of 2x5 that could be subdivided into a 2x2 and a 2x3 just because you previously used a 1x4 and a 1x6.