Yes, I did not address the size of lots etc, but the method was used throughout the 1800s IIRC.
Because I have conflicted info on that. The Morrell Act said increments of 40 acres. I've seen some say a quarter of a section or 160 acres. Walter Prescott Webb in his book on settling the west said 360 or 180 acres.
Any of these numbers are small numbers when you consider that it takes a 100 or more acres to graze one head in these western lands. Spanish and Mexican land grants were in the 100s of thousands of acres. Texas disposed of her lands and created very large ranches.
I'm interested in any sources you have on that.