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I've noticed the same thing with audio amplifiers. I just moved into a relatively small apartment, and have been shopping around for a compact stereo amplifier that apparently doesn't exist—good-sounding audio seems to exist in this weird market niche where the hugeness of the black metal box that used to house vacuum tubes and now is just ICs and empty space is a feature, not a bug.

Frustrating!

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I think there is still a need for higher quality audio hardware to be larger. My amplifier isn't that old (certainly not old enough for vacuum tubes) and I can assure you, there is not a lot of empty space. Power necessitates large transformers and capacitors, and produces more heat, all of which would be challenging in reducing size.

That said, while there aren't many high quality amplifiers with a smaller footprint, there are a few on the market much reduced in height that are still good quality.

The same goes for speakers. Generally quality requires size (although a lot of that is due to the increased volume that is expected to come with expense), but there are a few neat tricks to make small ones that buck the trend.

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