Thousands of non-GPU cores, intended to run normal tasks? I doubt it.
Thousands of special purpose cores running different programs like managing power, managing networks, managing RGB lighting around? Maybe, but that doesn't really benefit from this.
Thousands of cores including GPU cores? What you're talking about in labelling locality isn't sufficient to address this problem, and isn't really even a significant step towards its solution.
And even when you aren't intrinsically limited by that, optimal placement doesn't reduce contention that much (assuming you're not ping-ponging a single cache line every operation or something dumb like that).
But the hardware side, too: we're not getting transistors that quickly anymore, and we don't want anything too much smaller than an Intel E-core. Even if we stack 3D, all that net wafer area is not cheap and isn't cheapening quickly.