I believe some cabinets did get deployed, but residents objected to them, the council wanted BT to bury them underground, nobody was willing to fund that difference in cost and so the cabinets got removed.
It's to do with the relationship that Openreach have with the ISPs - Openreach provide an access network, they have to hand off a standardised interface for their customers (ISPs) to connect to. There also has to be a demarcation in place, which for FTTP is the ethernet port on the ONT.
Having ISPs involved in the ONT would mean Openreach couldn't sweep through an area and replace the ONTs if they needed to move to a different vendor, as some would object to the new units potentially not supporting their mesh wifi, their TV services etc. It's a lot cleaner in terms of who is responsible for what to have a box that stays on the wall with the fibre attached, and for the ISP to only tell customers to handle copper cables on RJ45 connectors.