Earlier quoted context omitted.
Yes they are, because the storage isn't arbitrarily small. There is always the latency of distance to overcome. That includes the centimeters to your main memory. There's always going to be a capacity-latency tradeoff.
That's a bit pedantic, though. The unavoidable tradeoffs are a pretty small part of the total that we're dealing with now.
Energy consumption, heat dissipation, all of this becomes a larger problem for smaller structures. It's just easier and less error prone to build larger structures, yields are higher, so costs are lower for larger structures.
I'm certain the tradeoffs will change, but it's all limited by some physical law and while we can sometimes trade one law against the other, we can't currently break them, so tradeoffs will always exist.