Turbo chargers are dumb, they have a bypass for the hot exhaust and an intercooler, surely they can be made smaller & similar to jet engine?

It would be better if the heated intake was used to combust the fuel, and the parts made to periodically power down if the exhaust was spinning up too fast. The same way a Prius shuts down the engine.

They are made like a jet engine. The turbine that is turned y the exhaust is like the turbine in a jet engine. The compressor part is also like a jet engine compressor. The intercooler is used to make them more efficient which means they do not need to be as big. The waste gate is so that they are only spinning when required. Without that, they would burn out in a few thousand miles.