People and organizations tend to drift toward waterfallish project management due to low-trust or high-risk situations.
(Oh, and trust and risk are mutually, inversely reinforcing. Low trust ➡ higher risk. High risk ➡ lower trust.)
It's not particularly good at addressing these challenges, but it seems to offer assurances, and that's what people want. They want documented commitment. They want to know they can lay blame. It makes them feel better.