Say we are selling rugs, and there is a style "Dots" in 3x6, 4x5 and 2x8, and also colors Red, Blue and Green. That's a lot of rug Products, but thankfully we can group them in one "Dots" product display.

However we named each rug descriptively (or maybe bulk content creation did it for us) like so: Dots Rug Red [3 x 5], On the product type we have a textfield for the color and a term reference for the size.