Another reason for packages like QFP is simply the number of pins - can you imagine how huge a 208-pin DIP would be!!!???? It's just impractical!

Even a 44-pin PLCC takes only about 1/3 the area of the corresponding 40-pin DIP!

With modern automated production methods, there is no longer any need to constrain lead spacing for hand-soldering - so fine-pitch rules.
Of course, this can be a pain when you need to hand-build a prototype - but that's not where the big volumes are, obviously! ;-)