Mid-towers have survived for the same reason cars still leave some open space under the hood in their designs: There are incredibly important practical benefits in being able to easily work in a space.
When it first came out I was a big fan of the look of the inwin d-frame, but looking at it today I'm not sure its as fit for purpose as a $100 off the shelf box from corsair or whatever.
I don't think this is really true, lots of smaller form factor devices are now used for gaming. Gaming laptops have been around for a decade+, gaming NUCs started popping up 4-5 years ago, the Steam Deck, a handheld gaming PC came out this year. The tower is still around but 'gaming PC' has diversified a great deal.
We could pack them more tightly, but that just make life and many things harder.
Having a mid tower case I can only hear my PC when it really ramps up.
My work laptop fan is blasting most of the time.
I would rather work on a tower/desktop PC. Usually has better CPU, GPU, RAM, Storage and much quieter.