There is one: the Jetbeam RRT-01, at least certain iterations of it. Most designs use a separate power switch.
This isn't more common because there's a patent covering using a Hall effect sensor in a ring around a flashlight body for this purpose, and the patent holder, Surefire has sued several manufacturers and vendors over it. A well-funded challenge would probably succeed on obviousness grounds, but patent challenges are expensive and I don't think the flashlight industry is profitable enough to justify it. The patent expires in three years, so this will probably become more common then.
Funny that I didn't see one from surefire. They should be cleaning up.
You can try searching for "infinitely variable" flashlights. Jetbeam RRT01 is one such example.
For a little extra "oomph", there's also https://skylumen.com/collections/v54-lights?sort_by=created-...
It is incredibly hard to find this. I have one somewhere, but the knob was a little silly:
https://amzn.com/B07BDQS3XX
I think a better design would be a ring around the circumference that you twist.
But I agree - when it came to putting a good stereo in my car (when you used to be able to do such a thing) I always kept looking until I found one with an actual volume knob. In a moving car - grabbing a knob and finding the right volume level is immediate and doable.
By the way, schiit hel: https://www.schiit.com/products/hel