I assume the extra padding was a function of touch screens becoming more prevalent since trying to hit the 2003 style buttons with a finger was not that easy, although I don’t remember offhand when touch first started becoming a thing in Windows so it might have happened the other way around. But either way it’s likely still a factor in why the ribbon with its extra padding has stuck around.
I feel there’s going to be an element of “old man yells at cloud” here, but that isn’t inherently a bad thing. I just use Windows at work at the moment but there’s very little I do in Windows that I couldn’t do as far back as Windows XP as long as driver support kept up. I don’t use it for the OS, the OS just enables me to use the applications I need.
Same with MacOS. I know Apple always act like every minor enhancement is the greatest thing ever (look, we added Tabs to Finder 🤩), but ultimately the OS is there to act as the pathway between my applications and my hardware.
If the focus switched from features to security, would we really lose anything of value? At a minimum I wouldn’t have family contacting me cause their PC looks different than it did previously (looking at you centralised Windows taskbar 👀).