Where this approach to encapsulating complexity can fall short is where we must maintain hard-to-check relationships between the state of the machine at runtime and the compiler. This is the source of many of the bugs which are most readily attributable to GHC's complexity (e.g. [#13615](https://gitlab.haskell.org/ghc/ghc/-/issues/13615) and [#14346](https://gitlab.haskell.org/ghc/ghc/-/issues/14346) come to mind here).
However, the sign-extension issue noted in this thread is, in my opinion, not one of these issues. In many ways it is a very boring bug, arising from a simple misunderstanding of the semantics of a function in the code generator (namely, that `getSomeReg` isn't guaranteed to return a fresh local register). There are a number of ways that this could have been caught: better code review, more thorough tests, better use of type safety in the backend. It's certainly an serious (and, frankly, embarrassing) bug, but I don't think it is a sign that the compiler has accrued more complexity than can be managed.