EVs are becoming popular and there’s no engine pulley to run all the various pumps from. Why install motor to run a hydraulic pump which in turn powers the steering rack, when you can directly power the steering rack from a motor? No need of additional components. Redundant components mean more capex, more opex and more things that can break.

EPS also frees up space in the engine room, making future repairs easier whether you DIY or whether you hire a professional mechanic. The vehicle architects can utilise the freed up space can in the cabin for increased passenger comfort and cargo capacity.

Road feel: the best road feel is provided by manual (un-assisted) steering. In that too, rack-and-pinion is better, recirculating ball not as much. But nowadays unassisted steering is impractical because even small, lightweight cars need to have power-assisted steering just because of the improvements in tyre technology, tyres have become much more grippy.

For hydraulic steering, some of the bumps from road are absorbed by the hydraulic fluid, acting as a “viscous fluid damper”. For EPS, when the driver is holding the steering even in a straight line, the EPS motor is making thousands of minor adjustments per second “against” the direction the road imperfections are pulling the steering toward. This acts as a “tuned mass damper” or even like an “active damper”. That is the reason of reduced road feel.

I learnt the technical reason about the less road feel from this 13-14 minutes long video:
The Problem With Electric Power Steering – Hydraulic vs Electric!https://www.youtube.com/watch?v=SnnVqs-fQ0U
Engineering Explained YouTube channel
May 12, 2021