They keep doing that because of his age not performances. You aren't going to be getting 5 year contracts at 36. Again, he's still a top 3 CM in the world without a doubt if you actually watch the games
He's really good for his age, but I think you're overestimating him. Madrid its all about the UCL, huge experience huge mentality. But watch la liga games, they're nothing special big part of it it's their midfield struggles when they play both Modric and Kroos.