"I really don't understand why everyone at a certain level or size in the industry is so Hidebound."

KO, it's part of the natural life cycle of businesses.  The older and more established they are the more they become risk-averse, especially over generations.  Towards the end, leadership becomes more concerned about their retirement than in adapting to change.  That is why the most successful companies in this country today were not around just a few decades ago.  Compare Amazon, Facebook, and Apple to Sears, Kodak, and one of my former employers, Southern Pacific Company (which at one time was the largest conglomerate in the country having railroads, natural resources, industrial parks, etc.). 

Younger, smaller companies are the risk-takers.  Larger, older companies are risk avoiders.  It's kind'a like real life.