I don't understand why DSEG14 doesn't have some of the lower-case letters that DSEG7 does. Anyone know why?

DSEG7 uses some lower case forms (e.g. for "b", "n", "t") to avoid letter shapes which are impossible to represent on a 7-segment display (like "N"), or which would be ambiguous (e.g. "B" / "8").

You still can't represent all lowercase letter shapes on a 14-segment display, but you can do all uppercase, so I'm assuming they went with that for consistency.