That part is mostly because of smartphones and their small touchscreens. You don't really have a choice with these fat fingers.
And for consistency purposes for multiplatform apps/webpages, desktop interfaces followed.
The unfortunate thing is that we have had smartphones for 20 years and no one could develop a paradigm with good desktop and mobile ergonomics. UIs improved massively from the 1980s to the 2000s, but from the 2000s to the 2020s, there is essentially no improvement. I understand the disruption caused by smartphones, but not the lack of progress. If anything, modern UIs are objectively worse than they were 20 years ago. Look at that mess that is Windows 11, nothing is consistent, even when you only consider what is shipped with the OS itself.