That’s just how technological progress works in general. Each new innovation is based off of loads of things that have also been innovated from the last iteration. To give you an extreme example, a similar question to yours would be “Why didn’t we get electric vehicles after horses and carriages and instead we had to go through steam power, then fossil fuels”.
“Shrinking” a cpu relies on very high precision equipment. At the moment a cpu is made at a certain scale, that’s the highest precision the existing tooling allows. And retooling is also insanely expensive in the chip making industry.
However, for some years now the size designation has no longer been reflective of the actual size: https://en.wikipedia.org/wiki/3_nm_process
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