The reason is that the new schema adds a great deal of needless complexity, requires the overhead of foreign keys, and makes it a hassle to change things later.
It's better to stick the the original design and add a unique index with key prefix compression, which all major databases do these days. This means that the leading values gets compressed out and the resulting index will be no larger and no slower than the one with foreign keys.
If you include all of the keys in the index, then it will be a covering index and all queries will hit the index only, and not the heap table.