They had their moment in the early 00s, but they went away largely because people stopped buying them. Even though Hitz and Blitz showed some of the more-cringeworthy aspects of their sports, the sales were good enough for the licensors to not really care.

If Tape-to-Tape ends up selling well, you'll see the NHL pushing for their own officially-licensed version (because nobody in that league has any original ideas). The same goes for other arcadey sports games.

MLB tried to bring back arcadey games with RBI Baseball (through their Advanced Media arm) -- without it, the only annual baseball game would be Sony's "The Show". They wound that down when MLBAM signed a deal to publish The Show on non-Sony platforms. I'd think that, if the sales justified it, they'd be happy to continue selling both sim and arcade games.