It could, but there's other benefits as well of decoupling wallpaper rendering from the launcher - it allows you to switch the launcher without having to beg the developer (OEM nowadays) to support your preferred (live) wallpaper. It gives you freedom to choose while preventing what the OP is ranting about - the launcher developer deciding for you what's best for you.

> the launcher developer deciding for you what's best for you.

I don’t understand how I would be deciding what’s best for users?

The only reason why third party launchers wouldn’t support live wallpapers is if Google didn’t give devs the tools to render them. All they’d need to do is include a WallpaperView the dev can add to their view hierarchy that supports live wallpapers. Boom, the dev can do fancy effects and the user loses nothing.