You’re leaving out a massive amount of information in order to greatly oversimplify something to fit your beliefs.
First- it’s not 2001. What was “great” in comparison 22 years ago, isn’t great anymore. Second- you’re using an entity that issued very poor FMJ and said they killed just fine as well. Third, the MK262 Mod1 contract is no more due to relatively poor terminal behavior in comparison to the current issued ammunition, and the perceived lessened need for a match accurate round. Forth- and the big one; the US MIL- all entities understand very little about terminal ballistics, and the very few places that have some idea, is only rudimentary.
No place that has a choice about what ammo they shoot, chooses to use 77gr SMK’s anymore.