I did some amount of research into the feasibility of PHE and FHE about 20 years ago, and my conclusion at the time was that the space overhead of the encrypted output was a massive bottleneck, which meant that while it was potentially useful in a small number of niche cases it wasn't ever going to be practical for general-purpose computations without a major breakthrough.

The gist was I could do an encrypted (int)x + (int)y = (int)z computation, I could encrypt the inputs and then get a result back that was correct, secure, and decryptable, but was like 1MB in size.

So, for someone whose knowledge is 20 years outdated and is about Pallier crypto, has that major breakthrough happened?