More like because the game designers only had roughly 150 pages divided between three little books in which to introduce an entire sci-fi RPG in which you could design characters, ships, worlds, animals, and several other things in order to create a somewhat detailed setting in which to play.
A RPG which, I'll point out, you are still discussing THIRTY FIVE YEARS after it's initial release.
Did GDW know about butane, propane, and various other hydrides? Damn straight, seeing as they owned cigarette lighters, gas grills, and the like.
Did GDW think including other fuels in the game was worth "page price" they needed to pay? Hell no.
Butane is a better way to carry hydrogen around? Tell me something I didn't know in 1978.
Better yet, come up with workable rules for it, apply those rules to the setting, and share the results with us here.
Eeek! Stop getting your science in my RPG! ALL of you! *Pointing at Whipsnade like he is multiple people and multiple bodies in one place*

I always assumed that L-Hyd was what they used because they were writing it for more than just scientists. But remember, I'm no scientist and hadn't read any of the JTAS CT articles until LONG after I'd read the TNE Core book and the GURPS stuff, where drop tanks weren't mentioned.
If there's a way to do what Mssr. Whipsnade suggests in a way that allows us non-scientists to understand it, I'm all for it.