I'm pretty sure I know why. I'm going to give you my take on it, but (as always) I defer to Duncan for the "official" explanation. 🙂 🙂 Please don't take anything I say as authoritative.
Let us say that there are two versions of iTunes U…we'll call the old version "iTunes U Classic" and the new version "New iTunes U". These aren't the official names…they are my names…I just made them up.
In "Classic" iTunes U, Apple gave your iTunes U site 500 GB of storage on Apple's servers. In order to use "Classic" iTunes U, you'd have to upload content to Apple. If you ran out of storage on Apple's servers, you were out of luck. "Classic" iTunes U was the way to do things from 2006 to early 2008.
Turns out that a lot of iTunes U Classic admins wanted to have a way to host content on their own servers, instead of Apple's. They had various reasons for wanting to do so…content could be in one place (one RSS feed for Apple or anyone else), fewer network hops for users to get to content, no need to upload content to Apple, the ability to have as much content as a site would like to have (no 500 GB limit), control over content for political reasons, and so on. So Apple added a feature to iTunes U Classic…the feed group.
Well, with the success of iTunes U (I don't know this for a fact, but I'm guessing that the number of iTunes U sites is between one and ten thousand), I suspect Apple decided the best course would be to simplify iTunes U by bringing it into parity with the podcasting world, generally speaking. Non-iTunes U podcasts in the iTunes Store are always hosted by private feed servers. So now we have "New iTunes U". In "New" iTunes U, we host our own content and just tell Apple about our feeds. No muss, no fuss. If you signed your iTunes U contract with Apple after the beginning of this year (2009), you've got "New" iTunes U; if you signed earlier, you've got iTunes U "Classic". Because Apple honors its contracts, "Classic" iTunes U sites can choose to use simple or feed groups. But if you're in "New" iTunes U, you just see feed groups.
I'm going to run for cover now. 🙂 🙂