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Trying to manage the differences between external and internal storage is difficult for the consumer as well as the OS running on the hardware. You get into awkward situations like having your internal storage full with applications that don't work properly on external, or having applications stop working when you connect the phone up as a USB mass storage device because Android can't access the card when in storage mode. Plus, if you have a removable card it needs to be FAT32 for compatibility (users will certainly at some point try to put it in their PC card reader), while if you use internal storage you can use the superior Linux filesystems.
I do miss having a removable card when doing backups on my phone or managing pictures I've taken, but having one continuous filesystem that all of my apps are able to access and not being stuck with FAT32 is quite a benefit.
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