Supply and demand. There is a need for both, and that's what we currently have. Choice will always be an important factor. Essentially producers of diapers will make decisions based on sales and feedback from both suppliers and users of the products they produce.
Right now i'd say that most within the ABDL community prefer plastic backed diapers, but not everyone. Some like to try both as new designs/styles are released. I'm open to trying new diapers, both plastic backed and cloth. Generally i prefer plastic backed diapers for the added security they deliver.
That said, i do agree that cloth backed do have a place, and are preferable for some wearers for discretionary reasons or as others have already stated sensory/comfort factors.
Many producers of medical grade diapers have experimented with cloth backed diapers recently, but have had poor feedback from the users of the changes made, and this has simply resulted in reduced sales. Fundamentally loss of customers and reduced sales is what is the deciding factor, as to whether changes adopted remain permanent or temporary.
A lot of manufactures attempted to cut costs by making inferior products, while hoping to retain their customer base. However they are beginning to realise that adopting this method simply results in lost sales sometimes permanently, and so they revert back to what they previously offered.
Not all diapers are the same. This is certainly true when it comes to cloth backed diapers. I would say that generally speaking ABDL cloth backed diapers are streets ahead of medical grade offerings.
As someone who is incontinent, and used to wear exclusively medical grade diapers i'm now predominately only buying/wearing ABDL diapers as they are superior in terms of better leak guards, greater capacity and better construction. Most ABDL producers/suppliers are very proactive within the community, and will provide plain white versions or subtle shades of the printed versions of diapers they offer.
My biggest issue with cloth backed diapers are they can feel clammy after a while of wearing them, they aren't as effective at odour control, they can seep through the back, especially if sitting for long periods of time.
However you can always wear a pair of plastic pants over them to address the seep through issue, but that kind of defeats the option to wear a cloth backed diaper over just wearing a plastic backed diaper.
I tried the Little Kings cloth backed diaper, but found the sides to be a bit scratchy. I loved the design though, but would prefer a plastic backed version instead of cloth.
Right now i have a case of Kiddo Teddy's Ultra, and i really like those. So i'm not anti cloth backed diapers, but overall prefer plastic backed. I think there will continue to be a need for both, and that's probably how things will persevere for the forceable future. Which keeps everyone happy!
My favourite plastic backed diaper at the moment for overnight use is Rearz Daydreamer, which is a fantastic diaper. It does however swell up massively
so best suited as a nighttime diaper. My favourite daytime plastic backed diaper is probably a PeekABU or a Little Pawz, because they have really soft plastics.