Because they require additional administrative processing because they are an NFA weapon.
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Their competition is any company that makes factory built SBR's or any company that makes components for SBR's. Most people work within a budget, so it doesn't matter how much better their product is versus another if the price falls outside the budget. Also, most people consider relative value when making purchases, even if they can afford both. The higher Colt prices their rifles relative to the competition, the fewer they're going to sell. It's just simple supply and demand. Often companies have to sell for less on a per unit basis to make more net profit overall.
Buy a 6720, stamp the lower, sell the barrel and buy short colt barrel from Grant. Done.
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Reality is that the vast majority of potential buyers are not "operators" who will have their lives depending the rifle they buy. They do not perceive that everything below Colt and BCM is crap (and it's not). If they can buy one for $200 less that functions just as well for them, then they're happy. Being the best while your potential customers don't think your product is worth the additional expense means that you'll miss out on sales. Selling the exact same SBR to a minority of your potential customers for $200+ less than the majority of your potential customers might just make that majority feel like they're not getting something for the additional money they're paying. And for the record, I have a Colt 6933 along with three other factory built Colt rifles.
BTW, what's currently the best selling lower receiver on the market? It's got to easily be the $50 ones made by Anderson. It just goes to show that low price does not automatically equal poor quality.
Is Olympic even still making rifles? I haven't seen one in ages it seems like. Hell, I forgot they even existed. And even the fudds bitch about their quality.
Another thing to kindly take into account, this forum doesn't revolve around, or even cater to, your vast majority of shooters. You have people here are do/have done shit that people make movies about and who shoot a lot. I mean like more in a month than ten of your vast majority shoot in a year. Hell I just semi retired a gun that I have, conservatively 65-70 THOUSAND rounds through it in the past 8 or 9 years. That is more than many will shoot in a life time and that is just what I put through that single gun during that period, not including my other rifles, pistols and shotguns.