They did have cups like that, in the 50's. They were extremely bad at the task of letting someone "grab a coffee" and return to their car instead of sitting down at the location, hence when styrofoam and coated-paper options came up, they immediately dominated and were a big enabler of that culture, alongside fast food. I still get cups to go on occasion, but I'm a little more wary now of them being a vector for microplastic consumption.

I'm sure we'll find a way to get acceptable price/performance with fully organic, disposable packaging at some point. The demand is definitely there.