Because it all has to work with the old equipment. As others said, you can get better quality with Voice over LTE where the voice gets digitally recorded on the phone and then transmitted over the internet where it is played back directly on the other phone. But with regular calls, they go through tons of other systems that were made decades ago and thye all need to be using the same standards to make sure that all the systems between you and the receiver can actually process the call.
To be perfectly honest, if you have not noticed the huge improvement over sound quality, you have a hearing issue. Your premice is completely wrong.
the sound capture itself has improved a lot due to active noise canceling; you have one or two microphone capturing your voice, and 1+ capturing the ambiant sound, that is then substracted through complex digital sound processing. The audio codecs used have massively improved in quality, the radios themselves are also better quality so there are less losses, and protocols with more bandwidth can be used.
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