Well, actually one Nokian did in 2005
http://lemody.blogspot.com/2005/11/xrandr-o-2.html
but the priorities were (and still are) set differently :-) On the other hand I doubt IT2005 or 6 would resize so nicely or even support xrandr extension in xserver so it was not easy at that time. Once I saw it (in 2005) I tried to add to kernel but kernel rotation support is only part of it, without support in xserver it is not much useful. And understanding and recompiling xserver in 2.x SDK for OS2006 was not easy, such old SDKs are missing lot of dependencies. So I put the idea to my long TODO list. 3.x SDKs (bora, OS2007) are much easier in this regard so maybe adding it to xserver in OS2007 woudn't be that hard after all. Still, OS2007 apps may not resize so nicely, they are slowly working or resolution independence for years so OS2008 is almost there but OS2007 is much older code.