1) LM317 and LM7805 are not LDOs. LM317 is a series regulator, which is way more flexible and has some infrequent but difficult-to-emulate use cases. LM7805 is a linear regulator but has substantial voltage drop relative to a modern LDO. Enthusiast/hobbyist space would do well to consider alternatives to the LM317/LM7805 if they're designing PCBs with surface mount components and very simple power rail needs, but for quick and dirty through hole designs there's few well-known alternatives that are truly LDOs - maybe MCP1700?
2) Enthusiast/hobbyist market isn't too sensitive to bulk pricing. Case in point: LM317 is about a dollar in hobbyist/enthusiast quantities, and LM7805 is comparable. TI lists 1ku TO-220 pricing at $0.65. You're definitely right for real products with mass manufacturing, but hobbyists don't generally haggle over pennies.