I don't know. Probably because many consumers are too ignorant to realize the benefits of widescreen. You don't know how many people have complained that the movie they bought has the "top and bottom chopped off". It doesn't fill their little screen; therefore they think it's inferior to widescreen. My family didn't even get it until I sat down and explained that you're not getting more with P&S (they don't chop the image at the movie theatre). Rather, the film is shot in widescreen, a fact many people are ignorant of. Pretty much everyone who truly understands what goes on prefers widescreen, as far as I know.

Although owners of ancient 10 inch TV's probably prefer P&S to widescreen.