Not everyone really needs high levels of power for their domestic hi-fi systems.
In Europe, most people live in flats of about 90m2 (apartments) with neighbors on the other side of the wall. And the music equipment is usually located in the living room, which is usually around 20 to 35 m2 and without a decent soundproofing.
In that situation you cannot take advantage of great power because it is unfeasible to apply big sound pressures ... without the neighbor calling the police and risking a fine.
Obviously there are people who live in single-family homes and do not have to worry about neighbors ... but in Europe that is the exception, not the norm.
In short, there is a huge market for low-medium power amplifiers (25-75W) ... for people who live in apartments with neighbors and without soundproof rooms. And (at least in Spain) it is a fact that many people have oversized amplifiers for their true needs in terms of sound pressure ...
For example, I have a second hifi system in a 15m2 room (5 x 3 m) with a Klipsch RP 160M speakers and I'm really left over with 35W and even less.... because it is impossible to maintain pressure levels of more than 90-95dB at the listening point without disturbing the neighbors... and that pressure is achieved with very little power in 15m2 with a standard 90 dB/W/m speakers that most people use.