From a business perspective the disk footprint is only a high cost if it results in fewer sales, which I doubt it does to any significant degree. It is wasteful, but can see why optimization efforts would get focused elsewhere.
Users might be more hesitant to switch to another game if it means uninstalling yours and reinstalling is a big pain in the backside due to long download times.
I looked up the size of the latest one, and Sony's investment in RAD Kraken seems to be paying dividends:
Xbox: 214 GB
PC: 162 GB
PS5: 96 GB
Publishers do have to care somewhat on the Switch since Nintendo does charge them more for higher capacity physical carts, but a lot of the time they just sidestep that by only putting part (or none) of the game on the cart and requiring the player to download the rest.
On phone, I bet you see some more effort.
On both phones and PCs storage has just grown so its less of an issue. The one thing I have noticed is that Apple does its price windowing around memory so you pay an absurd amount for an extra 128 gb. The ultra competitive Chinese phone market crams high end phones with a ton of memory and battery. Si some popular Chinese phone games are huge compared to ones made for the iPhone.