I don't buy the lawyer angle. I might give credence to the desire to limit
spray and pray damage by LEO. A fragmenting bullet is less likely to go through barriers then a bullet that penetrates well.
I think it's economics, physics, and salesmanship.
The problem with soft lead bullets existed even with 260 grains at 950 fps, back 100 years ago, or more. They deform, deflect, and fail to get to their intended target. A HP is nothing more, usually, then a jacket with some cuts, a hollow nose, and soft lead inside, that now is marketed at rates equal to gold.
Buffalo hunters got them to work by using REALLY heavy bullets. Not an option for CCW.
What sells HP's at this stage is how much did the bullet expand?
Little thought goes to how deep did the bullet penetrate. We all see way too
many tests where they put the expanded, recovered bullets next to each other, and trumpet which one works the best.
Service calibers just can't move heavy enough hollow points to really get
18" of penetration. It takes either a redesigned, thicker, jacket, or a harder
core, which isn't as easy as just using pure lead.
The 10MM actually did give you a chance of getting adequate penetration, but, due to recoil, scoring, and politics, it didn't make it. Not to mention not many firearms options at the time.
Sadly, since it's not sexy, or flashy, or sellable, the light weight, truncated cone type/LFN type bullets just aren't popular, outside hunting circles, where people swear by them.
Gelatin really doesn't do justice to the wound cavity created by LFN type bullets once they get into the 1100 fps plus range.
Also flat points, TC's, LFN's are more difficult to get to feed, and far more difficult to sell for 1.50 a round then the new magic hollow point.