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Mainly I believe because the light water PWR was developed for submarines and as compact a reactor as possible was required. Since then of course it (and BWR's) have been up-sized very successfully. Enriched fuel can now be made much more easily and cheaply by centrifuges than by the diffusion method, so to obtain low enriched fuel is more economical. There is also MOX available, though I don't think the US uses this.

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