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What happened is that people are willing to put up with it.

Games can still run fine from disc while using the HDD as cache. Add a CGI intro that loads data in the same stream. Read from disc and HDD together to reduce load times. Worked fine last gen. Of course long installs and day 1 patches also worked fine last gen. So why bother... Installing everything to hdd is easier, no need for a different disc and digital version, no extra work for play while download / installing. Print the discs while still working on the game, day 1 patch will fill in the blanks.

As long as people keep buying unfinished games on day 1 it's not going to change. At least there's no early access yet on consoles without any guarantee the game will actually be finished. (afaik)

I'm part of the problem, buying games early although I don't actually have time to play them yet. At least they're done installing and have been mostly finished (patched) by the time I get to them :/ Plus I don't play online, so I don't wait for patches to download. It will be installed next time.