Because tar gz works on any unix and 7z requires installing additional software. Whether you want that or not depends on your use-case. It's a good example of "good enough" software which is hard to phase out.
That said, recently I've found that CentOS 8 minimal did not have tar installed. So may be it's worth to start using something modern like zip or even 7z.
That said, recently I've found that CentOS 8 minimal did not have tar installed. So may be it's worth to start using something modern like zip or even 7z.