It's not just the vanity sizing, it's the styles that are popular now!
Of course vanity sizing is out of control! But I also feel that the reason I (and I assume others) are struggling to find clothes that fit is that the styles that brands are currently offering are just not flattering for petite frames. Everything is "relaxed fit," intended to fit baggy, has drawstring waists, shapeless legs, or fits like a sack. Even the patterns are too big for my frame.
I feel that fashion that looks good on me peaked in the mid-to-late 90s, when very minimalist, clean lines were in, and showing ankles in terms of pant length (which usually hit me like a normal person's pant length LOL).
I LIKE clothes that fit snugly around the waist and hips, and above all I hate the "I can't wear these jeans on a rainy day because they drag on the floor" look. I don't want my jeans to fit like sweatpants! I don't want boxy t-shirts but rather t-shirts that fit my waist (I'm not a fan of crop tops either).