I think one of the reason for the less popularity is you can't get enough ratio spread on the CVT design. Yes its infinitely variable, but the range which that happens is still limited. Also the NVH thing, most of the CVT are still somewhat limited in their torque capacity, and thus confiines them to smaller/cheaper car which tend to have poor NVH performance to begin with, coupled with engines that are not so smooth. So its one bad thing adds one another.
Nissan is making pretty strong headway though, most of the Front drive Nissan in US now uses CVT as their auto. Honda will probably follow suit now following the success of the new Accord. I think they still makes more sense than making complicated 9-10 speed auto....
The whole "stepped" feeling of the geared car will probably eventually be an non-issue. Especially when EV become more mainstream...
University of Toronto Formula SAE Alumni 2003-2007
Formula Student Championship 2003, 2005, 2006
www.fsae.utoronto.ca