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I’d say thats a pretty significant size difference, like current Nox/Blazer. Given mania for crossovers seems fine to have two models. IMO
Good point,
Current Blazer is 191.4 inches long, 76.7 inches wide, and 67 inches tall.
Current Equinox is 183.1 inches long, 72.6 inches wide, and 65.4 inches tall.

That extra length and width in the Blazer adds up to a lot more car but in some ways, I see your point regarding merging the two and selling just one car with more room that’s the competition. Could GM be just dividing up sales that could be covered by just one model
They (the gassers) are also kind of aimed at two different markets, in this day of having 947 different CUVs to fill every niche.

The Equinox is more entry level economy, especially now that you only get the <200hp 1.5T. The Blazer is a hair bigger but you start with the 2.0T and can get the 308hp V6 in the higher trims, so it's a bit more "performance oriented" (let me pause to lol @ a performance oriented GM CUV). I can confirm even the lower trim Blazer drives a lot more sporty than the Nox.

Removing the powertrain from the equation and having them on the same skateboard type platform though, I agree GM probably doesn't need two cars, but then again with the modular design of that skateboard it probably doesn't cost much to nip and tuck in a few areas to make the difference between a compact and a midsize while keeping the nameplate recognition going.
 
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