There others on this forum who know a lot more than I.
The thing holding back production of type II tape is plain economics. It takes a lot of money to set up the hardware and source the materials needed. Environmental\OSHA restrictions can be overcome, with very expensive hardware to comply with them. Some of the materials for the coatings are not readily available. Now, they can be made available-but how many tons of that compound do you need? Maybe it's say: 10 tons\yr. To make the economics work, it might only be feasible to set up to make a run of say 500 tons\year.
How many cassettes can you expect to sell at perhaps $5.00\each? (and some will wine about that price-"I used to pay $2.00 for Maxell UDXLII"). If the batch of a compound is only 10 tons, it can be produced, but at a dramatically higher cost per lb. That could make the unit cost of the tape $15, perhaps. Few will pay that.
Tape and vinyl never died, but they went from 10's of million units sold, to 100's of thousands\year. CD's were promoted as "perfect music forever". For the casual listener, CD's just made more sense. Those same listeners now go with iTunes, Spotify, etc. It makes sense to them-even easier than CD's.
I know little of the materials and processes used in vacuum tube manufacturing.
For vinyl records-the base material, PVC, has remained a strong selling compound-used by many industries. Heck-I bet the armrests of the office chair I am sitting in have PVC coverings. Record pressing, even in it's heyday, consumed a small fraction of total output. Environmental\OSHA restrictions are present in record pressing plants, but are far less costly to comply with, and the base material, PVC, is easy to come by, and can be purchased for a low per unit cost.