Expensive switch at work we have can only do 3000 route entries for example on ipv6. If we did /128s it's basically infinite though, because it goes from a LPM to exact match, which has much much more memory available.
Doesn't help as well that for example, to be able to do SLAAC or even DHCPv6 (which barely works reliably in my experience) you need to do a /64 at minimum, those mechanisms dont even work otherwise, so for ISPs who can easily have more than 3000 downstream customers doing routed ipv6 is such an increase in hardware cost vs just doing NAT which they were already doing anyway.