I feel your pain regarding the Touch Bar, as I used it quite often on my 2016 MBP. I've since moved on to a 2023 15" MBA, which doesn't have one. Once in a while I miss it, but I'm slowly getting over it.
While none of us here can speak for Apple, as only Apple knows the reason for leaving it off new Macs, I can guess some of Apple's reasons:
- Added cost (when compared to standard function keys)
- Software developer support wasn't as universal as Apple had hoped when it was first introduced.
- The most frequently used Touch Bar keys (for me) were the volume keys, which are standard function bar keys (though not as polished as the Touch Bar keys)
- For quite a few users, the Touch Bar required some input changes. (And, although everyone wants progress, nobody seems to want change).
My guess, though, is the added cost was the primary driver of Apple's decision.