What gets me is that lens distortion is a fully reversible convolution. It's not lossy, at all. Or rather, it's only lossy in the sense that the existing quantization in the sensor is already lossy: pixel boundaries, spectrum of the color sensors, etc... all have straightforward analogs in both space and frequency domain.
Basically: why hasn't someone come out with a camera with a junky single-piece lens and a fancy image processing backend and won the market?