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Development time and user support?
These are two pretty obvious reasons. It takes time and time is a limited resource. Therefore, time should be spent on solving impactful problems. Lemmy account login is extremely low impact, it's not a bad thing, it's just not something that improves immich for a large portion of its user base.
Another thing is user support. Since the many instances are self-hosted for the most part, and they will go offline, and they will go away forever in some instances. Users asking for support for this login type and asking for additional features to make up for this baked in instability.
Essentially. Low impact work that may drive a higher volume of support efforts.
It's the same reason some niche projects stop supporting Linux. Low user volume and disproportionately high "neediness" of those users.