I have so much moe for the various post-Z80 chips Zilog made that people think failed in the marketplace but are still around and perfectly viable for applications that don't need 32-bit https://en.wikipedia.org/wiki/Zilog_eZ80 But the thing is that you keep getting dragged kicking and screaming to ARM because even if it is boring it is capable, affordable and everywhere.
These days most smaller cores are integrated with peripherals, which can easily take the bulk of the silicon area (+cost). Then it's effectively free to tack on a small 32 bit core like Cortex-Mx (or even small 64b core). Why bother with 8/16 bit one?
I suspect RISC-V may eat a lot of that market in years ahead.
For components where CPU core is a good portion of the silicon (microcontrollers, RFID tags, toys, etc etc), that may be different. That's why many old 8/16 bit architectures are still around in one form or another.