They are but its not a major issue for me.

That depends. I happen to have two 2TB M.2 discs available, so it's not an issue for me, but I think it's an issue for a lot of other people. Mods, on the other hand, now there's an issue. I wanted to try a Skyrim SE modlist (Nolvus), but the modlist is about 550GB, or about 35-40 times the size of the base game. I have really fast internet, and plenty of space, but that's ridiculous, even for me.

Yes. Exactly. Like CDPR radically upgraded The Witcher 3 an managed to make the file smaller. Not to mention how they got it on the Switch with such a small file. 

Yeah bit it's nice to hang onto some games, I really want Ded Dead Redemption at a click away so I can go exploring but I can't justify the 100gb space. I do have a 2tb HDD with it installed on it though but to make use if the SSD I have to carry over the games. SSDs are to expensive fo rme at the moment. 

Ouch, 550 would take my Internet well over 24 hours. 

Forza Horizon 4 was 94.5GB and FH5 is currently 175 and getting slightly closer to 200 every month so it is definitely getting a bit much since FH6 could end up over 250. There have been recent advancements in keeping file sizes down though so at least the rate of increase has slowed down lately.

Yes. Optimization has gone out the window. It's easy to list say games are bigger. Sure but also optimization is almost non-existent now. Nintendo keeps their games to pretty small file sizes. BOTW could be 30GB but they got it down to 15-16 GB. More data to make more complex games is a given but developers and publishers should also optimize again. They used to mainly for physical storage limits. Now with digital, they just don't care which is scummy. No respect for consumers' data storage. They should still optimize.

File size compression is becoming a lost art with modern game dev.

Also doesn't help that not everyone on the planet has blazing fast, uncapped net, let alone for a decent price. I've got the storage for games, but when it comes to AAA, I am now having to uninstall games that grow too large (like Sea of Thieves, a game that has outgrown WoW's install size, and is catching up to ESO's filesize).

There are games like Titanfall 2 that simply dump all audio language files upon the user, even if they do not speak all those additional languages. We're also seeing games follow Capcom's approach, where you have to download mb and gigs worth of DLC, content you still do not yet own, but is locked away on your own console/PC, and none of it was by choice of the user, but by the publisher, which I feel is unfair to just drop on the user, to occupy user file space and then ask for money to unlock said downloaded files on your own system.

Live service games are also taking the mickey by expecting you to download gigs worth of updates, like SoT, where you're mostly downloading cosmetic items you buy from the Pirate emporium for real money, onto your system. I dread booting up Steam and seeing an update from Rare every few weeks, because I know it's going to be yet another 8-10gb "update" that does barely anything for me. 

All because of the inner detail in cockpit view I'd reckon. GTA7 is ballooning in the same way, a few cars release and it's another few gb but they managed to get the ps5 version compressed to i89gb over the ps4s 110 gb so there is something to Sony hardware saying that file sizes would reduce this gen but it seems devs are lazy.

Well, I suppose we have to be thankful the trend from a few years ago of wiping the game and making the gamer download nearly the full file again over and over like with Overwatch on ps4. That one was rough.