> What am I missing?
A few things.
There's only 4,294,967,296 addresses in IPv4, so if you hand out giant blocks, you run out quite fast, whereas with 340,282,366,920,938,463,463,374,607,431,768,211,456 you could hand out huge IPv4 /8 sized blocks from now until the heat death of the sun if you wanted to.
But there's more to it than that. Right now only 1/8th of the IPv6 address space is "assigned to the internet", so there's effectively 7/8ths being held in reserve for the foreseable future -- this is partially to accommodate realistic router memory limits in the near term. IPv6 also has a more efficient hierarchical routing scheme than CIDR (which was kind of bolted on to IPv4 after-the-fact), which helps keep router tables from consuming terabytes of RAM. And IPv6 is designed to be more easily renumberable when we do make mistakes with assignments, with a clear separation between subnet prefix all that requires is changing the routing prefix.
At the end of the day, with 340 trillion trillion trillion addresses, handing out too many isn't ever going to be a big worry in the foreseeable lifetime of...anything, really.