Well for me a metal halide has one primary advantage over EVERY other type of bulb that's out there whether it's fluorescent or LED... it's a single point source, and it's a bright SOB at a single point. Yeah you use reflectors to help distribute that light however you do get a bright spot as a result. Yeah you could use T5s and get similar outputs on average over an entire area, but you still don't get hot spots (which IMO can be a good thing), and with LEDs you have the best of both worlds, without really doing terribly good at either. Now it's true in reality the sun doesn't act as a hotspot even though it's only half a degree wide in the sky, sunlight really does hit the land fairly uniformly, but for some reason the halides give you the intensity of the sun, with the pop that fluorescent bulbs can sometimes do if you blue them up a bit.
And yes I don't think LEDs are really where they should be now, MH? Hell the only change in technology with them really is fine tuning the colors the put out, LEDs have been doing that plus have been physically getting brighter (more power). Also, and Tony can correct me if I'm wrong, I think LEDs are very narrow band with the light the emit, where MH do often have a sharp peak to be sure, but also spreads out some light over other parts of the spectrum.
Why have they never really caught on? Oh I think price is what's killing them. Its like solar panels, in many parts of the country you could put solar panels up and within 15-20 years they paid for themselves no problem, and that's without rebates, but you have to pony up the $20-40k for them which most people don't want to do. For me, $1000 for a "175W equivalent" that covers a 18" area? HELL NO! Sure they MIGHT pay themselves off over time, however as the technology does increase, do you really want to be stuck with crappy bulbs? Its one thing if they were cheaper, because as long as it pays itself off in a few bulbs worth of time it's all good, but if you have to literally wait for 5 years worth of bulbs before you break even? No thank you. Besides have you ever stuck with a single bulb type? I've tried many different types of bulbs over my reefing career and even when I find a "good one" I tend to get others until I find "the perfect" one ... which will then be replaced I'm sure in a year or two.