Tailwind goes into crazy extreme so people can copy paste whole complex components and they work. That’s why you can dunk on these verbose examples.
This is not how custom functional css codebase looks. In custom projects you change the system/configuration to fit the project. You create your own utilities for example you wont have “text-lg sm:text-xl font-semibold tracking-tight” but will have class “font-heading-2”. Similarly you will create button/input classes that have you basic styles.
Generally you start with just simple utility classes inside html and go from there and where it make sense or its too complex you separate to more complex class. You end up with short css file that only has these special components and none of the basic stuff.
For most elemets it ends up like “flex justify-center gap-4”. In BEM i have to invent “nav-secondary__header” put it in correct place and hate myself when i need to change it to “flex justify-beween”.
Tailwind popularised functional css but is also aimed at masses/noobs. Somehow some of those concepts also resonated with some experienced users.