If I was a casino operator, I really don't have a reason to offer S17.
1) It normally doesn't change playing decisions of a ploppy, unless they are very superstitious about the soft 17.
2) Most players (say 95%) don't care for the difference between standing and hitting soft 17.
3) For the 5% who do care for the difference (which includes us card counters), they will be SOL, but they still have options. They can play a crappier (but still beatable) H17 game, or they can go to the HL room, where S17 is a 'premium' for playing there.
Now, if I was a casino operator, I would make sure that I have surrender on all my blackjack games. Even though the counter can take advantage of it, it is heavily outweighed by poor plays made by the ploppy.