Assuming the $x_i$ and $y_i$ variables are all different, you do indeed get $2^n$ terms, because you are going to have to keep Distributing $\land$ over $\lor$ to get the CNF into DNF. For example:
$$(A \lor B) \land (C \lor D)=$$
$$((A \lor B) \land C) \lor ((A \lor B) \land D )=$$
$$(A \land C) \lor (B \land C) \lor (A \land D) \lor (B \land D)$$
So, with $n=3$:
$$(A \lor B) \land (C \lor D) \land (E \lor F)=$$
$$ ((A \land C) \lor (B \land C) \lor (A \land D) \lor (B \land D)) \land E) \lor ((A \land C) \lor (B \land C) \lor (A \land D) \lor (B \land D)) \land F)=$$
$$ (A \land C \land E) \lor (B \land C\land E) \lor (A \land D\land E) \lor (B \land D\land E) \lor (A \land C \land F) \lor (B \land C\land F) \lor (A \land D\land F) \lor (B \land D\land F)$$
Now, if you look at the $8$ terms that you end up with, you'll notice that each term consists of exactly one variable from each of the original terms $A \lor B$, $C \lor D$, and $E \lor F$, and there are exactly $2^n$ ways to do this.
This principle can be generalized to something like this as well:
$$(A \lor B) \land (C \lor D \lor E)$$
So now you have two terms, but one with $2$ variables, and the other with $3$. So, we don't get a nice $2^n$. Still, the number of ways to pick exactly one variable from each term is $2 \cdot 3= 6$. Indeed, doing so gets you:
$$(A \land C) \lor (A \land D) \lor (A \land E) \lor (B \land C) \lor (B \land D) \lor (B \land E)$$
... which is exactly what you would get when doing all the Distributions. (so ... what I am saying is that you don;t have to go through all the Distributions step by step ... you can really do all those in 1 step!)