My Metabo grinder has at least 2 metre of cable and it is flexible rubber as well, really useful. I bought a cheap drill from Aldi a couple of weeks ago and that came with a good long flexible flex as well so it looks like some companies are probably cutting back to save money. I put an in-line connector in to extend my hot air gun reach as the flex on that was pitifully short. On a high load like a compressor it's probably to stop the cable getting hot.
To be honest i think its more to do with the price of copper and wire, I bought a whole reel (50ms) from the electrical wholesalers a few years back and have replaced all my cables on power tools (about 10 to 15 ft)
It may also be the fact that most tools are used with an extension lead, so to save a few quid, the manufacturers cut the cable, saving a few pennies per tool may mean millions at the end of the year
Leads on ours last about 3 months before they get something dropped on them and cut, or end up with more insulation tape than sheath. When i change them i usually make them about 4m long, much better.
I've bought three angle grinders in he last year, two Makita and an Aldi. They've all had decent (2.5 and 3.5 metre) leads. I go along with Engineer1964's view. This is the makers thoughtfully protecting you from the dangers of over long leads (and saving themselves a few pence per unit).
I recall that Black and Decker went through a phase of selling drills with 2ft leads back in the 60s. It backfired because it irritated everybody.
In this case, add the cost of a proper lead and the trouble of fitting it and look at the decision to buy it again, with that added on.
Just bought a JCB orbital sander for a job at work; it has a good 4m of lead I reckon. Sadly the 'dust collection system' (ie a cloth bag) is about as much use as Tetley condoms. I just thought we'll be bound to need the 5 year warranty at some stage
I always though Vax vacuums were well thought-out: I used to be able to vac the entire house from one power socket, it had that much lead on it!