Well yes: monomorphization is an important optimization, but I'd think of it like inlining: whether a function is inlined is subject to a heuristic that aims to get the majority of the benefit of inlining while reducing code size blow-up.
Monomorphization would ideally be treated the same way.
Yes, there are aspects of C++ that make that so difficult that it's just not realistic, but really I was only bringing up C++ because the parent poster certainly meant the C++ std::sort. The same argument could also be applied to other languages that have less baggage, e.g. Rust comes to mind.
It’s a bit orthogonal to monomorphization, but I believe C++ compilers can occasionally deduplicate identical template instantiations, where “identical” means they compile to the same assembly even though the types are different.
One next step that I don't think C++ compilers do yet is deduplicate functions that differ only in constants used or functions called. This could help with std::sort-style functions where the outer algorithm can work on generic pointers and only the comparison is a call to a different function.
For example, due to operator overloading, given "T a, b;", you don't know whether "a + b" should be a simple addition or a function call. For full genericity, you'd want to compile this as a vtable'd addition, but that's going to severely harm performance for primitive types. So you'll have to monomorphize for primitive types. This applies to every operator in C++, of which there are a lot.
But that's just performance. Worse, the semantics of operators can depend on whether they are overloaded or not. For example, "a && b" short-circuits normally, but does not short-circuit if "operator&&" is overloaded. So now you need a variant for whether or not operator&& is overloaded (similar for "operator||", and even "operator,").
I'm fairly sure I've only scratched the surface of weird things that come up with compiling C++ templates. There's loads of other fun examples of template weirdness, like for example the program that throws a syntax error if and only if an integer template parameter is composite: https://stackoverflow.com/a/14589567/1204143