People are shallow ... especially when they're spending a lot of money, they like to visually enjoy the thing they're purchasing. External battery bikes will be cheaper as they use more off the shelf components so development costs will be less. This isn't a bad thing, it gives people a wider choice. There are still lots of bike out there which are external, so you can't complain that they're aren't any. Some are great performers too, Canyon, Thok, Vitus. You pays your money, you make your choice.Yea, you are 100% right. The trouble is the majorty of people are still buying bikes based on looks, and most people think integrated batteries look better. Manufacturers are having a hard time selling bikes with external batteries anymore.
There are other additional downsides to Integrated batteries too, such as more expensive and complicated construction, problems with heat dissipation, and basically that you have to scale up the rest of the bike to avoid it looking like a snake that swallowed a pig, so weight ends up increasing everywhere.
I don't think this is strictly true. I rode flat out on Turbo for half an hour on my Kenevo the other day and the battery temperature didn't go above 30c.
As for the snake and weight scenario. Do you really think a Levo looks like it swallowed a pig ? By making the battery fully integrated they could use the downtube as a "tube" so it's strong and hold the battery, so the weight is lower. It's not about internal battery is a heavier bike, it's about just putting more thought/effort/time/cost into the design and designing and building battery's which work effectively and efficiently with the design of the bike, both from a performance and visual perspective.