Implementing a process shrink is not just scaling the masks by the appropriate percentage. It often is a completely different optical train, at a different wavelength, different pellicle, changing the refractive index of the immersion fluid, different multiple patterning. It takes months (years?) of work.
For many applications it's worth it, but it's not at all a slam dunk. The vast majority of ASICs are designed for a particular node and never upgraded. It's the kind of crazy long-term speculative capital investment TSLA might have indulged in when the stock was at $414 a share, but it's nowhere remotely near that today.
They're already engaging in layoffs, today. Why spend the money?
They are, if the new node is cheap enough to justify the investment in shrinking the design. In most ASICs, being faster won’t make people rip out their embedded electronics for new models.
They've already been working on this for almost 7 years. This is not some side projects but a serious operation. They have to ship something sometime and they decided to ship this now.
I'm confident that they know about 5nm process and chose 7nm for good reasons.
There will be next version and next process.