Yes they can recycle SIMS:

https://www.awarefiners.co.uk/sim-cards.php

e-SIMS will catch on. Just like when companies realised they could save money not sending out paper invoices, they will add a little bit more to their bottom line by making people take an e-sim or pay for a card. Again, this will happen when more devices offer e-sim capability and eventually phone manufactures will realise they can save on costs by not manufacturing sim card trays or slots and the associated electronics needed to read a SIM card.

Also, you don't have the issue of SIM cards being taken out of stolen devices and put into new ones. Some people put SIM PINS on, but I see this more in the EU than here.