The problem here is that we could have had it much better. AMD has made a decision with one good karma solution while also having a bad karma side effect to it.
The Ryzen 7000 CPUs could have been cooler, a lot cooler. When I say cooler I don't mean consume less power (well, that's also the case if you manually power tune them, but besides the point).
It does not take a degree in mechanical engineering to see that AMD's decision to keep a similar Z height compatibility with AM4 socket and cooler cost them a lot of heat bottleneck in Ryzen 7000 CPUs.
The temperature delta between the CPU die and the IHS surface is monstrous, and exists thanks to the particularly high thickness of the IHS and its general design.
So if you are AMD you have to choose between supporting many (I would say even most) of AM4 compatible coolers, or make your new CPUs being able to run coolers, possibly slightly faster, or even shift your entire frequency to temperature goal 10 degrees lower to stay away from the reputation of those CPUs running particularly hot when stressed. I wholeheartedly believe that we can reach such large delta if AM5 CPU IHS was to be design with thermal flow priority first, and completely disregard AM4 cooler compatibility.
AMD's decision about this is at least a part on why we ended up with this interesting situation.
It is easy to just say "AMD should have decided to change their compatibility and drop AM4 support entirely", but the backlash from that might have been more severe from the one on the whole "designed to run at 95c" one. I for one, wouldn't want all my AM4 cooler equipment to be incompatible with AM5, that would suck, especially for the lower end parts.