Probably to streamline the experience and make it easier to understand (although I don't know why they didn't keep it behind some "advanced" button for power users).
Because that's Microsoft's entire MO in general...presume that every single person that uses their software is incapable of making technical decisions. It would be so simple for them to include one little link in that Default Programs window saying "add an extension", and for that to be linked to another window where you can easily do this within a safe, GUI environment. Instead they force us to edit the registry, which is 10 times more dangerous! And if they're worried about average Joe's wrecking their computers, they could include a simple message box that informs the user of the risk!
Honestly MS, I've been an amateur developer for no more than 10 years, and the biggest software giant in the world can't employ programmers with more, or even an equal level of, knowledge as me?!?! So how did you get to that status in the first place?!?! It really boggles my mind!
Sorry for not actually adding anything constructive to the discussion but this whole perception by MS of its customers as being non-trustworthy little children really cheeses me off...and I came here in search of an answer to the same question that the OP asked, but I guess there is none (other than messing around with the registry, which I really hate doing).