Oh, I wouldn't say it took expert knowledge in the past. I've been able to download ettercap for years. It'll sniff switched networks. I just need to plug into your LAN.
>why isn't the POTS network encrypted?
Because I can't pick up the receiver and listen to my neighbor's calls. That's exactly how ethernet doesn't work. I hear all, even on switched networks with a simple tool. Wireless? Even worse, it's the equivalent of using a non-switched hub. I'll even toss in that POTS should be encrypted point to point, but if you would have attempted it before Phil Zimmerman trail-blazed strong encryption for us commoners, you would most likely have ended up in a federal prison if you used non-trivial encryption.
So, to address the original question:
1. Encryption really was expensive in 1996 or so, but in the age of multicores, its questionable if there's a real cost now.
2. Performance hit. SSL handshake is long and annoying. We could use a replacement here.
3. Legacy. The hackers who slapped together networks and the various protocols we use weren't interested or couldn't properly secure this stuff. Thus the legacy of spam, plaintext everything, etc. Retro fitting security is hard. Its good if its there from the start like GSM.
4. Standards are hard to change. Imagine telling all the browser makers and open source projects that we should all switch to something that won't add to the bottom lines/download rate/market penetration, but instead cost them time and complexity as well as add server load. Google can't get anyone to care about SPDY. Who is going to re-architect this stuff? We're essentially living in a world convcieved in the 70s, implemented in the 80s, and made popular in the 90s.
The easy answer is to stop allowing non-encrypted wifi. I'd love to see the wifi consortium just default to a random key for non-authenticated guests in whatever the newest version of wifi will be. It'll be transparent to the end user and probably stop all these local attacks. It won't help you past the gateway, but right now between the client and the gateway is the problem area. Heck, why not make all networking gear do this, even on wired networks? We have the processing power.