> At the physical layer, is it the materials in the cables are getting better?
Yes, and more expensive on that. Laptop makers totally hate usb 3.0+ for that.
The industry standard for internal digital connectivity was the FPC - flexible printed circuit board, a very economical and ergonomic solution, but then came USB 3.0.
Regular polyimide FPC can't reliably handle the high frequency signalling. Still, many laptop makers still use it, to regrettable results.
The few solutions left are the micro coax cable, running twisted pair inside the case, or passing it over a hard pcb bridge. All are very expensive, and hard on assembly lines.
This is why in most budget laptops manufacturers do a following trick – they put all usb 3.0 ports on one side, and 2.0 on the opposite. This way they only have to run the low frequency, low lane count usb 2.0 to other side of the laptop.
Only very recently, there came an FPC maker that makes custom cabling with some proprietary dielectric that can handle 3.0. And they charge more for it than for hard pcb bridge.
Even if the cable material issue is solved, you still have to find way to connect it to PCB. High frequency connectors are not cheap either.