A much easier example might even be the case of a single variable. Consider $(1+x)^{1000}$. If I allow the input to be the string "(1+x)^(1000)", it takes just $11$ symbols to represent the polynomial. However,
$$(1+x)^{1000}=\sum_{i=0}^{1000} \binom{1000}i x^i$$
so if I want to encode the polynomial as the array of its coefficients, I would have to store an integer array of length $1001$, and we are not talking about small numbers:
$$\binom{1000}{349} =
21641441731297707077348545845272311836878450545908804528165639558 \\
12217865325857621178201271717138465393830136766111168336839797876 \\
007373244834924296399090470901253455374741637406778878451634116115\\
025377035477150500931579776387615986613131159215927828897815143706 \\
593214626066844000$$
The input sizes in your example (although there's something wrong with $f(x_1,\ldots,x_n)$ containing the variable $x_{2n}$) are computed as follows: You require $\log(n)$ space to represent an index $i\in\{1,\ldots,n\}=:[n]$, by encoding the number in base 2, for instance. This is the space required to encode a single variable from your polynomial ring. You have $O(n)$ factors in that expression, each of them a sum of constantly many two variables, that makes a total of $O(n\log(n))$.
If you expand the expression, it becomes
$$(x_1+x_2)\cdots(x_{2n-1}+x_{2n}) =\sum_{\alpha:[n]\to\{0,1\}} \prod_{i=1}^n x_{2i-\alpha(i)}$$
and you may notice that those are $2^n$ many summands, each of them a product of $n$ variables, each of which requires the aforementioned $\log(n)$ bits to represent. That's $O(2^nn\log(n))$.