Short answer, because they are safer.
Longer answer: NOAA and the USN actually require the use of a J-valve or similar devices for black water diving. If you've ever dove in the kind of murk where you literally can't see your hands in front of your mask, that's why they are still required. They're considered a "redundant air supply" right up there next to a pony bottle. You can't monitor your pressure gauge, because you can't SEE your pressure gauge. But if your air supply gets critically low, your friendly neighborhood J-valve gives you a kick in the butt and allows you to pull the rod and get another few minutes to surface. For reasons like that, the J-valve is still required for some diving: It provides a physical kick in the butt, when someone isn't monitoring their air supply for whatever reason.
DAN has made the suggestion that a number of the OOA diving deaths, where divers were found with empty cylinders and no apparent malfunctions or physical problems, are caused by "distracted diving". A photographer gets into "flow time" and is so intent on chasing some critter that they forget to look at their air gauge, that they just run out of air. Ooopsie. If they had a J, they'd et that same kick in the butt and a chance to surface calmly with the rest of their air.
Now, I know folks say "Oh, the J rod can foul! Oh, the J-rod can deceive you, because you think it is up but something pulled it!". Yeah, that's right. But my left arm is trained to reach back and tickle the J-rod every once in a while, the same way I would look at my gauges and for my buddy. It becomes routine. So even if I was diving in kelp and something could trip the rod, even if I didn't notice I was fouled and pulled free, I'd still be checking it, routine. And in the worst possible case "But the J-valve could fail!" then what happens? Gee, I'd have an empty tank, the same as a working K-valve.
Really, there's nothing to lose, and a substantial safety gain. That's why the J was hailed as a great innovation when they came out, and why it still is. (Also makes a great tank handle for carrying.(G) But the valves used to cost something like twice as much as a K valve, maybe another $30? each. (I've long forgot what my tanks cost, the valves came with them.) So rentals and shops had to charge SOMEthing more for J-valves, and then if you're renting them, there are those rods to attach to the BC strap, so there's more work and fussing to do.
So apparently in the interest of saving a few bucks and making life easier (which sells more diving) the industry has killed what it once hailed as a great innovation. And what NOAA and the USN think is STILL a great way to give divers a back-up.
And on a shallow water dive, like lobstering or spearfishing a jetty or fluke diving? The J means I don't really have to bother with my gauges at all. Breath away, and if you run out of air...just pull the rod, there's plenty of time to surface and head ashore again.
IIRC the new ones from XS are set to 500PSI, the old ones were 300 but also often could be set a bit higher.