That was mandated by Congress. Maybe Sony could've argued that MiniDisc's lossy compression would be enough of a deterrent against piracy, since it couldn't make perfect CD-quality copies like DAT could, but after having DAT nearly killed by the "Copy Code" system that the music industry wanted to impose on it, I guess they didn't want to take any unnecessary risks regarding music copyrights.
Was not it DAT that was crippled by the Congress, not MiniDisc? If MiniDisc protection was mandated by Congress, why no one cared about copying CDs and then MP3s? I was thinking about buying a MiniCD player on eBay just for fun: 210 MB vs 150 MB on MiniDisc, although most devices are much uglier and need a computer to burn disc - they cannot record off analog input with a press of a button.
Ah... Old tech. Just found a Pink Floyd's cassette recorded for me off a CD by my friend quarter century ago: it is a chrome BASF tape, no Dolby. I put it into a 40-year old deck I recently acquired, it sounds great. I forgot what is it to sit on a couch in front of a deck with two large floor-standing speakers on the sides, just listening and looking at the dials... Cassettes are dead for all purposes except for nostalgia. Moreover, even CDs are almost dead. My son does not care for any things physical, he did not bother with Pokemon cards. Baseball cards? What is it? Cassettes? CDs? Physical media? All this stuff on the inlay, the photos, the lyrics, the bio can be found on the Net if needed. On a second thought, maybe it is not Gen Z who are aberration, but all the 20th century generations, who had too much stuff, the "consumers". Virtualization, streaming, cloud - all these technologies bring us back to the centuries of existence, when people had only a home at best, and in this home they would have a table, a bed, a pot, and some wooden spoons. Now if we stop using plastic cutlery, that would be just lovely.