I think OP's point is that our current approaches are hacks around HTML - what the browser sees isn't individual components, but their combined output. It would sure be nice if this was something directly supported by browsers without the need for server-side frameworks.
People should stop treating the dom and browser abstraction as golden standard. It's just an abstration that happens to be standardized. Sometimes it makes sense to follow the standard, sometimes "the standard" is just too shitty to follow.
That's my point - if the standard is so shitty in this area that everybody reinvents this particular wheel in a hacky way, the standard should be improved.
That's cool but people need to ship products while their ideas for improvement are endlessly debated, bikeshedded and possibly rejected eventually.
At the end the standard is never what they exactly wanted. So it's kinda a futile effort, and for what? Most don't write code for 3rd party consumption, where standards shine.