This is my 2nd year using Craig's dense planting method. I transplant them usually before they get true leaves. Your size seedlings should be fine.
I'd watch how much light you can give them all, though. Will you have enough really good lighting if you have each one in a 4" pot? Getting leggy tomato plants due to less than excellent lighting isn't the end of the world, but it will be much easier to avoid damaging them later if they're not tall & skinny.
I vaguely recall that one of Craig's videos showed him potting up several tiny seedlings into the same 4 or 5 inch pot, with a little space between each one. I think that is only good for a few weeks before they'll need more room, but a few extra weeks of very good lighting for them might be worth the extra bother if that's the only way for all of them to get good light.
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