This seems like a strange way to frame it. Polygons aren’t what get subdivided. Subdivision surfaces & NURBS are what get subdivided, and those are routinely used in production and have tooling. Polygons by themselves don’t get any smoother or provide the advantages you’re talking about, nor do they solve all problems of workflow, tex coords, stitching, etc.
You certainly can, that’s true. But without a higher order source model to work from, it doesn’t help you solve any of the problems @BubRoss mentioned above.
Tessellation is not just subdividing; it’s linearizing something else. You have to start from that something else for tessellation to be meaningful. The GP comment above was advocating polygons as a replacement for curved surface representations, but without a curved surface representation like a subdivision surface, tessellating polygons doesn’t make a lot of sense.
I'm not advocating, I'm explaining why it already happened twenty years ago. Polygons can be trivially subdivided to a rounded surface or converted to a subdivision surface. This is something anyone who has used maya, houdini, lightwave, softimage or 3D studio has seen their entire career.
If you think using polygons solves no problems, I'm guessing you haven't tried to make a pipeline with nurbs (not many have in this day and age). Texturing takes specific paint and texturing tools while the resolution difference between patches complicates things even further. Even getting the model detail is difficult. Everything about it is painful. It isn't even a contest, everyone transitioned to polygons and no one looked back.
