gcc copied most of its command-line arguments from older compilers, including -o, and the default value if -o isn't set was also copied.

So the command-line arguments and defaults are older than the ELF format. When ELF support was added, the question was: Should the default value for -o depend on other arguments? There didn't seem to be good reason to have a complicated default, and keeping the simple default provided compatibility with old scripts and makefiles.

cd tests ; for a in *.c ; do gcc $a && ./a.out ; done

The format was named for the file, not the file for the format. By the time this became incongruous, it was too late to fix.