Your question assumes that CPUs with more than 40 pins were a rarity in the 1970s, but this was common for early 16-bit CPUs. Both the TI TMS9900 and the Motorola 68000 had 16-bit external data busses, no multiplexing, and came in a 64-pin DIP package.
The thing that was common at this time was DIP packaging. And the number of pins on a DIP package was limited by simple geometry - a rectangular package needs a progressively longer lead from the corner pins to the semiconductor chip as the number of pins increases. This geometry constraint limited DIPs to 64-pins, practically. This limitation also helped drive the transition from rectangular DIP to the various square packaging that followed.
The Intel 8086 came in a 40-pin DIP and relied on multiplexing for its 16-bit data bus (shared with address lines). The WDC 65C816 used the same 40-pin DIP and multiplexing scheme. Neither of these 16-bit CPUs were particularly successful in these packages. The 65C816 was repackaged for the SNES as the CPU core in a QFP package. The Intel 80286 was the more successful 16-bit successor to the DIP 8086 (and 8088) in 1982, and by that time square packaging was replacing DIPs.
In short, the market did not want a 16-bit CPU in a 40-pin DIP package with external demux. Fortunately, DIP soon gave way to newer packaging geometries that supported far higher pin counts.