Your analogy to an iPad is nonsensical. haha
I think you're slightly misinformed for such a strong opinion (ie. "it's stupid"). The cost difference is not actually that different. In fact, plywood clapboard is cheaper than vinyl and wood clapboard is about the same cost as vinyl. The real difference is in maintenance. However, it depends on how you look at it. Vinyl insulates less well than clapboard so you're paying more in the long run to keep your house heated (developers don't care about that because operational costs aren't their concern). However, clapboard is prone to warping and requires retaining and repainting every 4-10 years. It's not as simple as you're proposing - both claddings have advantages.
With that said, I think there's something to be said about our collective identity as a place. Historically, salt-box houses are made of wood and so are the majority of rural houses in NL... I don't think we can so quickly abandon our collective heritage for the sake of efficiency. It is certainly not for 'no reason whatsoever'.
I agree - I don't want to take the choice away. I want to make wooden clapboard a competitive alternative to vinyl siding with a tax which closes the cost discrepancy (if there is one). Alternatively, the City could offer tax-incentives or rebates for homes that opt for wooden cladding (however, I'm not too keen on this idea).
A comparison can be found here:
http://www.qualitysmith.com/request/articles/articles-siding/home-siding-estimates/
However, values are quotes in US Dollars.