It could very well have been tradition - I have an old Singer book on machine made lace. The laces were done using the first electric Singers. Most laces and thread painting were done with a hoop of some kind, so the technique could not have been far off from FMQ. The electrified machines might have had a steadier stitch.
It could have been the lack of space, the fabrics available, the threads, but I'm thinking some must have done machine quilting back then, even if just straight stitch geometric. It also lacked the sociability of a get-together.
https://en.wikipedia.org/wiki/Longarm_quilting
http://hartcottagequilts.com/his9.htm