I would guess it boils down to being easy to do with existing hardware and be first to that market, rather than developing something from scratch.
Repurposing existing hardware with firmware tweaks seems to be wouxun's thing, really, and they seem reasonably willing to modify an existing product to a vendor's specs, probably with a minimum order quantity. It seems like buytwowayradios and bettersaferradio both have pretty much one-off wouxun products, no?
No disagreement that making it small would make sense, though the remote head capability the 980/1000 chassis brings is something rarely found in the smaller radios, and may make the actual size of the unit less of an issue since you can stash most of it in the trunk or under a seat.