Speed of light doesn't adhere to Moore's law :) and it's made worse by the fact most everyone connects via WiFi these days and it alone adds a few ms more.
I'm not surprised; you need a lot more servers and even so, there are a lot of places where something low ping times is difficult. While there is a lot of room for latency to go down, 1 lightmillisecond is ~300 km (~186 mi). This means that if a computer is 150 km away, 1 ms is the minimum ping allowed by physics, if I am talking directly to it.
By that yardstick, we've actually done very well in a lot of cases. :)
Throughput has increased but latency hasn’t changed much
Latency hasn’t decreased substantially since the late 90s when I remember getting sub 50 ms ping in Quake III from my dorm room in college