Only regional services go to this station. Every other service only stops at Reutin. Wiki has a pretty good article about the station. https://en.wikipedia.org/wiki/Lindau-Insel_station
I remember reading an article, possibly Plan Of The Month about Lindau in a 1980’s Continental Modeller. It was a major hub with loco hauled D and E trains to all corners of Germany plus cross border services into Austria and Switzerland. Seems the apple has rolled away from the tree as the years passed by.
As far as I know it is an european effort to provide more highspeed connections across borders and between capital hubs. Possible examples are the new mainstation in Vienna, the new Stuttgart mainstation and so on. So you have less terminus stations so trains just can go through the station to be faster.