Because why?

Virtual memory gets rid of a lot of fragmentation issues.

Yeah. Fragmentation was a niche concern of that embedded use case. It had an mmu, just wasn't used by the rtos. I am surprised that allocations aren't a major hitter anymore. I still have to minimize/eliminate them in linux signal processing code to stay realtime.

Probably because hardwares became powerful enough that you can make a performant game without thinking much about allocations.