First, studio monitors have changed. Near-field monitors are a relatively new (as seen by the big pictire) development, and many have gotten better and cheaper since th NS10 and it's early ilk.
But the main forces behind the miniturization of loudspeakers are (mostly) advances in materials technology and (also) advances in speaker cabinet design.
I'm a bit out of touch on exact materials used these days, but basically loudspeaker elements have gotten stronger, lighter and faster because of materials used. From the space-age alloys used in the magnetic voice coils to high-tech polymers used in cone manufacture (as opposed to the old pressed-paper cones) to the layering of metal alloys via vapor diffusion techniques not available twenty years ago, the quality of the speakers themselves have greatly improved and the speed and accuracy to which they can respond to the electrical impulses fed them by the amplifer has as well.
There are also advances in cabinet design. Old-fashoned tuned port and acoustic suspension designs have been replaced by computer-designed interiors, ports and/or speaker array placements that help support the sound. Witness the revolutionary Bose Wave radio to which there are now dozens of copycats. The secret behind the response of the Wave radio (whether you like the sound or not) is the special acoustically-designed channels through which the sound wave travel before they leave the box.
G.