Everything I've read recently indicates that "recycled" glass is generally just crushed and used as road base instead of being melted down and re-used as containers etc.
We only had a few kinds of bottle designs, standardized across the whole country. I worked in a brewery over the summer, in the filling section. The whole day trucks would arrive full of empty bottles collected from various stations. They would go through a large washer, with a visual inspection afterwards (the most boring job there was, that was before that could be reliably automated, 1980s). Occasionally new bottles were fed into the system, but very few, <10% I would say.
I also had a relative who owned a recycling station where people brought paper (mostly newspapers and magazines), cardboard, and lots and lots of bottles, and got money for it. The amount (of money) was significant enough that those shops were pretty busy, and especially the young (like me) could quite significantly add to their pocket money.
The main point was the standardization. Germany today also has lots of stations to receive cans and plastic and glass bottles in exchange for a bit of money - but it is a PITA because not just have the bottles to fit, but even the labels!! The machines at the retailers only take back bottles of brands that they sell. Crazy!
This seems like something that could be brought back through legislation instantly, and I cannot understand why we're prioritizing the freedom to make your own unique bottles over this. There is 0 reason why all beer cannot be sold in identical bottles - after all, the label can still be unique and identifying your brand. Then the bottles just get washed and reused.
Although these days an aluminium can is the more popular container, and they are indeed used only once. Proper bottles are getting rare, which I hate, since the bottle is much more pleasant to drink from in a hot sauna. Doesn't burn your lips.