Windows 10 reversed a lot of the controversial UI changes from Windows 8, but the mouse/keyboard UX was still largely a regression from Windows 7 due to the introduction of giant padding regions on any new/redesigned software so people could use their fingers. Maybe people haven't noticed this as much because the economics have worked out such that most software is now designed for web/mobile first, so having giant padding regions on desktop is more normal.

Macs had managed to avoid this degradation for a while because they didn't have touchscreens, but Apple put in the giant finger-friendly padding regions as part of the UI changes in Tahoe, which got a lot of negative feedback. Now that they're introducing touchscreen laptops, it's unlikely that they'll ever fully revert those changes since it will make the touch experience worse.

Padding is also there because screens got a lot bigger and higher resolution in the 17 years since Windows 7 came out.

This is even true with laptops since bezels have dramatically shrunk in size.