Because such a harsh punishment doesn't fit a first time offense, especially if it's entirely possible both parties had innocent intentions?
In university I took advantage of a lot of my peers by having them critique/edit my assignments (of course, I'd offer the same in exchange). One of my editors could have a moment of weakness and plagiarize my work, but that's never happened in all those years. However, it was always possible. Would that merit expulsion on my part? Or should the punishment be a slap on the wrist and a reminder to exercise better judgment in the future?
On the other end, sometimes the person committing the plagiary isn't aware that what they're doing is wrong. I've seen a lot of it at the writing center, and this happens a lot with (especially east-asian) foreign students. Here in the US, we teach that individuals should have our own ideas, but in some places, they encourage adopting ideas from great thinkers (understand and make their ideas your own; stand on the shoulder of giants so to speak). And even with local students, some genuinely don't understand that copy-pasting 2 lines from the wiki is a breach of conduct.
In the end, it's much better for these students that you take the time to teach them the hows and whys of avoiding plagiarism. There are a few bad eggs that will never learn and will consistently plagiarize, and its at that point when expulsion is merited - and probably best for these students, since they probably weren't meant for academia. However, the majority of students (even the foreign ones) catch on and grow to be very successful academically.
Now, I don't know how it's possible any student could have completed all those years of school prior to college without having encountered this lesson. Our school system truly is dysfunctional.