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Anyway, I think most people can be just afraid/uncomfortable with the feeling of losing hours of progress much more than only minutes of progress. It's kind of counter-intuitive, because PoH ultimately requires lots of hours of training and repeating. But the difference is it's always one step at a time, and not a one giant leap, which makes it overall easier to swallow.
If someone isn't initially interested in doing Steel Soul, then they will naturally not know about all the ways how to approach it in this game (with even the option of not losing progress).
Godhome is a different game mode (and the best part of the game, IMO). Steel mode is just the regular game mode, except you lose your save if you die. I guess more players thought Godhome was more worth their time than a game mode that's basically the same.
I myself am often guilty of this, and I am constantly fighting this inner perfectionist.
Plus Godmaster is significantly more difficult than the base game content, demanding you to be capable of fighting multiple bosses in a row without breaks. That requires that you have far more experience with any of the boss fights than you'd normally need in order to finish the base game. On the flip side, Steel Soul mode is essentially the exact same game as before - you just restart if you die. And you don't have to fight every single boss, even to get the 100% completion achievement, either.
to repeat the beginning part again and again and get back to 0 with one(or multiple in a row) careless mistake probably feels less attractive than grinding poh .
I guess people beat PoH , get burned out and dont come back. PoH can make you hate the game.