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Lots of reasons.Well how do you suggest they get through 500 apps for 2-3 spots? Its not perfect, but its the best thing we got. Why would you take someone who scores 220 over someone who scores 260? Its obvious the 220 had a poorer knowledge base. People should know how competitive things are and should keep that in mind when studying for step.
That aside, as others have noted this won't change much unless CK also goes P/F. Then we'll just see GPA being emphasized. You'll have the problem then of PDs learning what schools grade more strictly compared to others and the students from those schools will be judged differently.
If we're trying to cut down on student stress with regards to step 1 scores, seems like the easiest thing would be to do something like score ranges. Instead of exact scores, maybe ranges like Less than 190 (or whatever passing grade is) then in increments of 20-30 and then >240 or so. You can still use it as a cut off and it fixes the issue where a 220 and a 230 aren't likely all that different in terms of performance.