because a backup camera has very specific requirements like being able to function in basically all weather conditions and having zero delay.
the quality of a backup camera is basically irrelevant, once its good enough it will be doing everything it needs to do, increasing the quality wont make you park any better or see things any better.
beside this car manufacturers are trying to save money where ever they can because you may think its only a few bucks more but if you build 10 million cars like for example Toyota does per year you suddenly spend tens of millions on that one single part.
To see how cheap car manufacturers are just look at Tesla and their missing sensors like rain sensor, USS or even radar.
Tesla is trying since 2016 to replace a rain sensor that costs literal cents with a software solution that uses their camera, it never worked and is still not working 8 years later and still they wont spend the few cents on that rain sensor.
Car components have a lot of requirements, and ruggedness is even more important than how well they work. They have to work flawlessly for a decade or more. They have to be waterproof and frostproof because they’ll be outside. They have to work when they’ve been sitting in the hot summer sun and they’re over 100 degrees, and also when it’s below zero. Cameras also have to be fast, because people like to turn the car on and immediately soak it into reverse and start going.
Reliability trumps high specs. Imagine if you had to get your camera replaced every few years because it broke?
There are almost 100 million vehicles produced every year. Regulations require a backup camera but does not specify much on the quality of the camera and screen. If car manufacturers install a nice $50 camera in each car that would cost them $5B a year. So they go to the camera manufacturers and ask them for the cheapest camera that barely meet regulations. It will be a very crappy camera and probably not very usable. But if the camera costs just $5 in bulk it would just cost them $.5B in cameras saving them $4.5B a year.
Even worse then this, they can include an option to install a $50 camera at the factory which will be integrated into the entertainment system in the car. And because you are already spending tens of thousands of dollars on the car they might set the price of this option to $100 and it will still not be noticeable on the final bill. So by using a $5 in the base model they not only save billions but they also make $50 extra in pure profits on every sale just slightly above the base model.
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