Anywhere with high energy prices, hot/cold climates, or environmentally conscious buyers, thats a no-go!
Balloon framing is extremely thermally efficient, which is why it's used in places like the northeast US which have freezing winters!
The foam sheet insulation you speak of is relatively new to the industry, at least for middle class homes. Having a continuous layer of insulation outside the framing definitely makes stick framing more energy efficient than it would be with traditional fiberglass batt insulation in a wall cavity.
Most american buildings talk about R10 to R15, and occasionally you might get up to R20 if you build it well. Verticals of balloon framing are usually ~R5.
New buildings in England need to have walls of R32 as an absolute legal minimum (and more for ceilings and floors). And England has pretty mild weather compared to much of the USA.
If you don't want to click it's T-Studs - 2x3s with diagonals dowels with a 1.5 inch air gap
The actual manufacturing steps I'm sure are all automated, and not exactly complex, so the added manufacturing steps should be far outweighed by the reduced raw material and logistics cost.
I'm going to guess the increased price is some combination of 'we have a patent on it' and 'we charge more because there are no competitors, because we have a patent on it'.
Double stud construction with blown in cellulose has also been around a long time. (You can get R45 with a 12” wall)
Which is to say there are shop drawings and you can’t just go down to the store on Saturday and strap a few to the roof of your station wagon even if you just want to build a shed.
In the broad sweep of history they are a modern product.
But in 1995 I worked with a guy who used to work at the local plant. That’s how I learned about them.
Later he and his brother built a house out of them…that’s where the panels on top of the wagon image comes from.