Because it's part of the traditional BASIC experience, especially in Japan. The Wikipedia page for MML goes into some detail here and there about its history, but I think this part sums it up nicely:
Modern MML originally appeared in Microsoft BASIC and was common in the early 1970s and 1980s on 8-bit and 16-bit era Japanese personal computers. The NEC PC-6001 included Microsoft BASIC and the Programmable Sound Generator in 1981. The MML was especially popular on NEC's personal computers, such as the NEC PC-8801. With the 2001 release of the mck (Music Creation Kit) software for compiling MML to play music on the Nintendo Entertainment System, awareness and use of MML increased. MML is presently popular among Japanese electronic musicians and musicians who create chiptunes as a way to write music for the Nintendo Entertainment System.As for why SmileBASIC doesn't support MIDIs despite them having more features, well... MML being easy to edit is probably one aspect of it, but when we're talking about platforms like this, it's not always about what's most useful or has the most features. Part of the reason SmileBASIC exists is because of nostalgia from growing up with BASIC in the 1980s, and wanting to share that experience with others in the modern age. Because of that, one of the design goals has always been to feel like BASIC. There's a certain charm there that has to be preserved, even if it means leaving features on the table. That's why I don't see them, say, adding an elaborate type system, or ditching DATA statements, or adding support for music files like MIDI or MP3. Yeah, it'd be more powerful, but something would be lost in the process. SmileBASIC isn't just about letting you program on the Switch, but also providing a different kind of environment than modern computers offer.