"People will sacrifice a bit of performance" was also enabled by all the MCU advances.
Those bytes of memory really mattered when 512B was all the RAM you'll ever get. Nowadays, you can buy a RTOS capable 32-bit MCU for $0.20. Why count bytes when you can just... not?
The amount of memory used defines the size of the state space of the system ā with exponential growth in the number of representable states. The amount of testing needed to have confidence in the behavior of a system grows (and Iād state based on experience, but without proof, grows faster than logarithmically) with the size of the state space. Building smaller, simpler systems is still the key to being able to realistically test and define behavior at high confidence levels, regardless of the price of a bit.
Those bytes of memory really mattered when 512B was all the RAM you'll ever get. Nowadays, you can buy a RTOS capable 32-bit MCU for $0.20. Why count bytes when you can just... not?