I also don't see why you need more delta-v to go from launch orbit to circular orbit to transfer orbit compared to the transfer orbit directly. My orbital mechanics are rusty, but it seems to me that since you need to lift the perigee from Earth's surface to Mars orbit, you'll pass the circular orbit on the way.
I still don't see why circularizing the orbit would be wasteful. Circularizing an elliptical orbit at apogee still requires positive delta-v, which will help you on the way to the hyperbolic orbit. Only if you want to circularize at perigee would you need to slow down, which would indeed be extremely wasteful. It's true that you get more energy boost for the delta-v if you do it early rather than late, but I don't know if the ellipticity of the launch orbit is high enough for that difference to qualify as "extremely" wasteful. But maybe it is.
As I understand it the big drawback to EOR from an engineering standpoint is that the added complexity introduces a bunch of extra failure modes.
Of course, once you've build a big enough rocket, its usually cheaper than multiple small ones. But there is a market for medium size rockets like the Falcon Heavy already. Not so, for bigger rockets - yet.