In any case, the main problem is that the abrasive garnet particles become decidedly less abrasive once they've been smashed into a piece of steel at 75000psi. Think of it like one of those tumblers you use to smooth and polish stones to make them pretty.
EDIT: As someone else mentioned, it's also a QC issue. Even with brand new abrasive, you sometimes get the tiniest bit of something the wrong size or weight and the solenoid feeder gets jammed and has to be take apart. Recycled sand and who knows what else would be a nightmare. Waterjets are enough work to keep running as it stands ;-)
Source: ~7 years of using an Omax waterjet cutter.
Depending on the abrasive, it's theoretically reusable, but that would be very hard to quality control (even assuming you separate it effectively from the material).
This is one reason waterjets often get used only when other ways of cutting are not effective.
Also note: for things like wood, you can probably water jet them without abrasive.
Yeah, I'd love to have a water jet for making tools, but I've learned to live with the fact that these kind of things are better owned by someone else.
but I totally agree with your last point, its less convenient, but doing small to medium runs though a local water jet shop is pretty cost effective. Its mildly pricy but they will source standard material for you, and you pick up clean parts a day or two later. even ignoring maintenance - dealing with the up front cost, the consumable cost, and renting enough space to keep the thing is a pretty serious commitment. I have free access to a 4x8 cnc plasma gantry and I still send out quite a bit of work to the water jet place.