People absolutely do plug tens of thousands of watts' worth of appliances into a single 15-amp home circuit that can supply only 1,800 watts at once. And as long as they don't exceed 1,800 watts of momentary usage by too much or for too long, it works. AC power doesn't have a "commitment" in any sense but a physical plug shape. It just has circuit breakers to prevent fires.
A good example of the problem is a hypothetical USB-PD power strip that has 5 ports. The Amazon listing says it can deliver 120 watts. A person buys it, thinking they can use it for their 100-watt laptop and four other small things that each need barely 5 watts, 1 x 100 + 4 x 5 = 120, so the math adds up. They're still working from home post-pandemic, so they leave their laptop plugged in all the time on their desk. The laptop charges for maybe 45 minutes each day, but it still tells the power supply that it needs 20V x 5A = 100W constantly, and each of the small devices asks for the minimum of 5V x 3A = 15W.
For actual USB-PD supplies I've bought in this approximate situation, the laptop won't charge because the supply can't promise 100W. You hook up your Kill-A-Watt and find that the supply is actually drawing only 20 watts. The power supply is keeping all its promises -- 15W to each of four small devices, meaning it can't agree to supply 100W to the fifth device. So it instead says it can do maybe 12V x 3A for the laptop, which says forget about it and refuses to charge. Yeah, the laptop sucks for lying that it needs 100W 24/7, but what am I going to do? Get a new laptop? Or just put the USB-PD supply on a shelf and return to a regular old AC power strip with five individual USB transformers plugged into it? That's what I'll do, because that's what works.
In today's world, the "If" in your comment happens at the AC circuit-breaker level. In the USB-PD world, it would happen at the level of this little multi-port power supply. Your average consumer in a hurry doesn't want to be bothered by this kind of detail.