Because the CPU is going to do the work to make that illusion happen regardless of if you participate in it or not - so why constrain yourself to anything less than 64-bit pointers if you're not going to get anything in return?

What cache optimization are you referring to? Just that 32-bit pointers is a form of pseudo-compression and can be more densely packed? Because there's not really any other cache benefits in play here, and you don't need 32-bit compressed pointers to get optimized cache utilization - value types & data oriented design is far more effective for improving cache utilization.