Royal powers went away in 1689. The Queen's role here is entirely pro forma, and she cannot alter legislation.
The fact that governments have sought her approval on matters, despite not being required to do so, isn't remotely surprising. And if you didn't care about the state providing a privileged life for the royals before, why would you care now?
The fact is, not enough people care enough to make it a political priority.
More to the point, virtually all royal powers can, by tradition which is as strong as fundamental law, if not as clear on how you might amend it, be used only on the advice of (which in practice means at the direction of) of various bodies of Government, mostly the Cabinet wearing different hats.
The Crown just provides a bit of formal distance from the acts for the actual actors (but, being as it's been true for so long, that probably doesn't mean much in terms of practical accountability.)
The fact that governments have sought her approval on matters, despite not being required to do so, isn't remotely surprising. And if you didn't care about the state providing a privileged life for the royals before, why would you care now?
The fact is, not enough people care enough to make it a political priority.