https://partner.steamgames.com/doc/sdk/uploading#AppStructur...
The whole industry could benefit from this.
This would defeat the purpose. The goal of the duplication is to place the related data physically close, on the disk. Hard links, removing then replacing, etc, wouldn't preserve the physical spacing of the data, meaning the terrible slow read head has to physically sweep around more.
I think the sane approach would be to have a HDD/SDD switch for the file lookups, with all the references pointing to the same file, for SDD.
Also largely cause devs/publishers honestly just don't really think about it, they've been doing it as long as optical media has been prevalent (early/mid 90s) and for the last few years devs have actually been taking a look and realizing it doesn't make as much sense as it used to, especially if like in this case the majority of the time is spent on runtime generation of, or if they require a 2080 as minimum specs whats the point of optimizing for 1 low end component if most people running it are on high end systems.
Hitman recently (4 years ago) did a similar massive file shrink and mentioned many of the same things.