Yes, there are people working on this.
VPRI[1], the group around Alan Kay had an NSF-funded project to reproduce "Personal Computing" in 20KLOC. The background was that way back at PARC, they had "Proto Personal Computing" in around 20KLOC, with text-processing, e-mail, laser-printers, programming. MS Office by itself is 400MLOC. Their approach was lots of DSLs and powerful ways of creating those DSLs.
This group then moved to SAP and now has found a home at Y-Combinator Research[2].
One of the big questions, of course, is what the actual problem is. I myself have taken my cue from "Architectural Mismatch"[3][4][5]. The idea there is that we are still having a hard time with reuse. That doesn't mean we haven't made great strides with reuse, as in we actually have some semblance of reuse, but the way we reuse is suboptimal, leading IMHO to excessive code growth both with increasing number of components and over time.
A large part of this is glue code, which I like to refer to as the "Dark Matter" of software engineering. It's huge, but largely invisible.
So with glue being the problem, why is it a problem? My contention is that the key problem is that we tend to have fixed/limited kinds of glue available (biggest example: almost everything we compose is composed via call/return, be it procedures, methods or functions). So my proposed solution is to make more kinds of glue available, and make the glue adaptable. In short: allow polymorphic connectors.[6][7][8]
So far, the results are very good, meaning code gets a whole lot simpler, but it's a lot of work, and very difficult to boot because you (well, first: I) have to unlearn almost everything learned so far, because the existing mechanisms are so incredibly entrenched.
[1] http://www.vpri.org
[2] https://blog.ycombinator.com/harc/
[3] http://www.cs.cmu.edu/afs/cs.cmu.edu/project/able/www/paper_...
[4] http://repository.upenn.edu/cgi/viewcontent.cgi?article=1074...
[5] https://www.semanticscholar.org/paper/Programs-Data-Algorith...
[6] http://objective.st
[7] https://www.semanticscholar.org/paper/Polymorphic-identifier...
[8] http://www.hpi.uni-potsdam.de/hirschfeld/publications/media/...