What is the benefit of smaller transistors? Serious question. Why does it matter if I have 7nm vs. 5nm vs. anything else?
To Oversimplify.
With a Fixed Yield, and an exact 100% increase in Transistor Density that translate to 50% smaller Die Size.
On a Wafer, that would equate to Double the amount Die you have. All of a sudden your profits increase dramatically.
5nm also have a better power curve so within the same clock speed you have lower energy usage. Hence you can push for higher performance if needed.
The first point of Uni Economics is important for the industry. If you have high enough volume, say hundreds Million of chips per year then it make sense to move to the next node for cost saving. If you have small volume or low margin chip then the Design Cost, which is the most expensive part of chip making, would not work to your benefits.
And it also depends on Wafer price, If 5nm is Double the Price of 7nm then in the above example your unit cost would be exactly the same.
The second point is important for CPUs, and other things that are increasingly computational expensive like WiFi 6 and 5G Modem. You want your Smartphone to last longer on battery so they work better on an energy efficient node.
So basically it is a Cost / Performance trade offs.