ATMs have security measures like daily download limits, unusual locations triggering denials or ID checks, etc. which cryptocurrencies lack.
There's a really big difference between your potential losses being capped zero to a few hundred dollars vs. “everything you own and half of the community will say it was your fault”.
No reason you couldn't have some of these features in a crypto wallet. Lots of schemes are being created with with multisig, smart contracts, and social recovery methods. Here is one around freezing transfers not to a known address.
https://www.coindesk.com/ethereum-startups-team-to-offer-ban...
There's a really big difference between your potential losses being capped zero to a few hundred dollars vs. “everything you own and half of the community will say it was your fault”.