The reason is simple. It is s community. After you make some posts (4 or 5) you get access to a much larger global upload space.
The primary purpose of Songstuff is not as a music host. That funcionality is provided purely as a means to allow artists to get critiques when it is the most suitable method for the artist considering their need. Many artists already have several music hosting accounts and are quite glad not to have another site to upload to. Many use Sound cloud.
What we do have here is a lot of experienced musicians and writers, label owners, music marketers and more. We also have lots of free articles and tutorials etc. You can run a blog here, Upload photos of your band and artwork, start your own discussion group with it's own news stream and forum, and yes somewhere down the list - host audio.
Of course none of that costs you a cent.
If you are looking for a more permanent music host Songstuff is currently not it, but then there are many music sites that specialize in that. Songstuff is not an OMD of any kind but it does provide a lot to artists. Who knows you might get that date lol
There are quite a number of collaborative writing and recording projects too. Handy for lots of reasons.
If it isn't for you that is a pity. Good luck and happy hunting. If it is for you then great, come on in and make the most of the features, make some contacts and improve your understanding in the areas of the muic business that you want to develop skills or contacts in.
Simple. lol
If you really need hosting then suggest it. If enough community members are interested Songstuff would add it. It is very rarely mentioned by members SO FAR but as Songstuff tries to support the needs of members, it has to adapt to changing needs. I can say adding a more OMD approach or bulk hosting isn't on the current site development plans.
I hope all that helps no matter what you decide to do.