Tom,
Simply put it is not ESRI's decision. The U.S. Army Corps of Engineering, Hydrologic Engineering Center (HEC) is not a commercial entity and their development work on all HEC related H&H software is not bound by business considerations--rather operational and configuration management tied to the needs to the Corps of Engineers.
ArcHydro and the Water Resources Application Framework development, including HEC-GeoRAS/GeoHMS is a collaborative effort on the part of U.S. Governmental, Educational and ESRI Professional services. It continues apace with the needs and requirements of each participant. ESRI has proceeded with development of an ArcGIS 10 ArcHydro extension because it does make business sense. The HEC on the other hand does not yet require an ArcGIS 10 capability at this stage of the HEC-RAS and HEC-HMS projects. The ArcGIS 9.2/9.3 compliant GeoRAS 4.3/GeoHMS 4.2 and GeoHMS 5.0 developmental versions of the software are being maintained by this effort.
ESRI is not the purveyor of HEC-GeoRAS/HEC-GeoHMS, simply a collaborative partner in its development. ESRI hosts, as a public service, access the "developmental" versions of the software. The HEC retains distribution and management of the "official" versions and provides configuration management and technical support for their internal USACE offices.
I'd note that in reality, in an academic, corporate or governmental setting it is a simple matter to maintain ArcGIS 9.x and desired HEC GeoRAS or GeoHMS functionality by retaining seats of ArcGIS 9. ESRI's licensing structure facilitates this and their track record suggests they will continue to support prior versions indefinitely.
There are other commercial purveyors of preprocessors for the HEC RAS/HMS modeling systems, Aquaveo for example, that have implemented ArcGIS 10 capable versions of their software. A route the HEC has no operational need to pursue--yet.
Stuart