The batteries themselves only dissipate heat relative to the charge/discharge rate/current but the total capacity would not change that.
Some people want huge battery phones, but most don't, consumers have been voting their wallets for over a decade now.
https://arstechnica.com/gadgets/2019/02/motorolas-2019-cheap... includes-a-5000mah-battery-option/
https://arstechnica.com/gadgets/2020/04/the-2020-moto-g-goes...
https://arstechnica.com/gadgets/2021/01/motorola-shovels-the...
Here is HTC trying to sell a phone with a large battery
https://arstechnica.com/gadgets/2020/06/htc-still-makes-smar...
Right now ASUS will happily sell you a phone with a very large battery
https://www.asus.com/mobile/phones/rog-phone/filter?Series=R...
Motorola will sell you a 2022 model with a 5000mAh battery
https://www.motorola.com/us/smartphones-moto-g-power-gen-3/p...
But, want to know a secret?
If you want almost any smartphone to have a battery life of 5+ days, don't install any chat or social media apps, and turn off background email syncing. For that matter, turn off all background data transfers.
Problem solved.
Because it isn't hardware that is at fault, it is software. Batteries have actually been getting bigger and bigger, the iPhone 6 everyone loves from 8 years ago had a battery that was under 2000mAh.
Here is a graph of iPhone battery sizes:
https://9to5mac.com/2022/12/29/iphone-battery-mah-capacity-l...
Batteries have been getting bigger, as have screens, and the software demands put on devices.
It isn't some conspiracy or market failure.