Consumers sometimes have a “fashion over function” mentality. This is simply a good example of this. You can’t blame the automakers too much for providing what people are buying right now.
You’re correct that these tires are often impractical. Although low-profile tires do offer better handling, the tradeoffs generally don’t make sense, in my opinion. Something in the medium-profile range would probably provide all the handling most people need while reducing the drawbacks quite a bit.
For what it’s worth, when purchasing a new car, it’s often possible to trade a lower-profile setup for a higher-profile setup from the base model of that car.