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The chunkiness is in large part due to modern movement design prioritising robustness, shock resistance and serviceability. People expect stuff to “just work” now. Longer power reserves and automatic winding are also a factor.
It’s also a longer term fashion thing. What people expect a watch to look like. At one point 36mm was considered a large mens watch, and now most companies see 40mm as a default average. There was a fad for ultra thin watches but it’s long since faded (though Bulgari are still breaking records) and now the luxury steel sports watch (the Rolex archetype) is probably the most popular design.
There are exceptions - eg Nomos make a number of smaller, slimmer mechanical unisex watches - but I’m sure a lot of blokes would consider them effeminate.
Given that watches are pretty much the epitome of miniature mechanism (this side of nanomachinery), can anyone tell me why the Swatch Skin (and Skin Chrono) is the exception proving the rule that nobody thinks more miniaturisation is better?
I find the ubiquity of chunky watches quite puzzling - watch companies can fire all the engineers and hire all the marketers they want, but that doesn't alter the size of anyone's cuffs. What gives?