So, basically, yeah - one distinct advantage of lower magnification is larger FOV. One distinct disadvantage of a smaller objective is a smaller FOV. So it gives up some of the benefit it gained - to what end?
As has been mentioned, there are disadvantages to smaller objective scopes - light transmission being one, smaller relative FOV being another - and what's the advantage? I really don't care about saving a couple inches of body length or a half inch of height or a few ounces of weight - that's not an advantage for me.
If it came down to a 2-7x32mm vs a 3-9x40mm, I take the 3-9x40 every day and twice on sunday. Could care less that the 2-7x weighs less, is shorter, or is lower to the rifle - no advantage for my paradigm.