This doesn't work simply because nobody has implemented it yet. If you want to do so (and make the worldjQuery a bit better), just take a look at the "Contribut to jQuery".page.
To solve your problem for now: you have to do the calculation on your own - something like the following (not tested, but you should get the idea):
For a single element:
var element = $('#animate');
element .animate({
'width' : element.width()*2,
'height' : element.height()*2,
}, 'slow');
For multiple elements:
$('.animate').each(function(){
var element = $(this);
element .animate({
'width' : element.width()*2,
'height' : element.height()*2,
}, 'slow');
});