The reluctance to use more pins is very understandable.

At the time, Intel was primarily a memory manufacturer, and they had vertically integrated the complete workflow for anything that could fit into a 16-pin DIP. Anything that didn't, required them to outsource testing and packaging, or purchase expensive new machines. When CPUs were still being pushed against the wishes of upper management ("A computer has only one CPU but lots of memory chips, so the memory is a better business"), it was a hard sell to invest lots of money for an uncertain market.