It's much less of a problem than it used to be because streaming platforms normalize the tracks anyway so it's been fading away for a while now.

Most headphones people actually use are crap. Yes you can buy studio monitors from sony. That isn't what people are listening to. They are using airpods which sound like earpods have always sounded: crap, absent lows, terrible separation. So you compress the hell out of the audio and make it loud so you can actually hear something with those headphones.

There's still plenty of crappy headphones, as others have pointed out, but consider also listening from a phone's speaker, a cheap bluetooth speaker, with just one earbud/headphone on, etc.

Speaking of, I think the sound quality of modern-day bluetooth speakers is really good.

Most people listen to music in their car. More compressed audio means less fiddling with the volume knob as you drive, regardless of normalization done by Spotify et al.

Anyhow that's my theory

As a mixing engineer:

1. Compressed sound can be an integral (wanted) part of different genre aesthetics. I personally love dynamic mixes, but if you let your customers A/B mixes they will often chose the more compressed/louder one. If your song sounds weak after another bands song, that is an issue.

2. For reasons of health/liability there are maximum levels on headphones and mobile playback devices. That means if my mix has a high dynamic range the bulk of it may really just be too low when played back on the majority of headphones. If I mix my own music this is a bargain I can make if I mix other peoples music I would try to be a little more on the cautious side if the musicians didn't demand a highly dynamic mix.

3. Compressed sound works better in noisy environments and as background music. 90% of people who listen to music do not listen to it actively, they just let it run in the background or are passively exposed to it. Try listening to a good dynamic recording of Beethovens fith in your car with the window rolled down. You will hear some strong phrases then inbetween nothing as it is below the ambient noise floor.

Vinyl has the benefit, that I as the mixing engineer can assume that the listener will be much more likely actively involved with the music than say in a radio mix.