One could also argue the removals would not be necessary had Michigan not overbuilt in a few places decades ago.
But that of course ignores the trends planners were observing in the post-war era. They had every reason to believe Michigan would keep adding millions of taxpayers for decades, so not only would they be able to pay to maintain their roads, they'd better invest in building stuff now to stay ahead of demand. It was not obvious the state's population was about to plateau and several of its major cities were about to decline.
1970 was pretty much the point that massive population increases ended. Every decade prior, population in Michigan increased 15 to 30%. Ever since, it's been low single digits. The entire state had a population of 8.9 million in 1970, and 10.1 million in 2020. Michigan ranked #7 in 1970, but only #10 in 2020. That's pretty much on par with the rest of the Great Lakes region, however, where every single Midwest and Northeast state had low or stagnant population growth while the south and west increased their population substantially.
So, yeah, MDOT is being more selective about where to put massive overpasses and elaborate interchanges. They're trying not to sink major investments into corridors that aren't seeing rising levels of accidents or traffic counts. US-127 between St. Johns and Ithaca is one example where planners have decided massive investment is not warranted, and instead has seen a bunch of Band-Aids to eke out another decade or two before a full rebuild is necessary.
The Grand Rapids region is the outlier, with Kent and Ottawa counties growing 10-20% per decade. It's not surprising that MDOT has put more investments into this region in the past 20 years, with the building of the M-6 freeway and M-231 Grand River crossing, plus select widening of US-131. If the trends continue, the pressure to bypass Holland with a new-alignment US-31 will become more evident.
Elsewhere, the main reason you're seeing widening is that the roads were already overloaded, but have now come to require ground-up rebuilds and design to modern standards. There's no way I-94 in Jackson could legally have been rebuilt as its late 1940's design, or I-94 around Kalamazoo as its late 1950's design. But even then, you see the (lack of) extravagance, with Kilgore Rd rerouted to eliminate an overpass, and the interchange with US-127 rebuilt as an at-grade affair instead of a freeway-to-freeway interchange.
I'll throw out M-20 between Mount Pleasant and Midland as another example. No divided highway here (except for a short stretch of narrow-median boulevard in front of the Soaring Eagle casino. A 5-lane arrangement (with Two-Way Left Turn Lane) was deemed adequate for traffic loads. Given the (lack of) population growth in either Isabella or Midland counties, don't hold your breath for a M-20 freeway supplanting this 5-lane during the remainder of your lifetime.