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This one I'm entirely unconvinced of. It is easier for the computer to adapt to us, rather than vice versa. And over time things get easier and easier for the computer, while staying the same for us. Which is why over time we wind up interacting with computers in ways that are more and more adapted to us rather than them. We already have acceptably good algorithms to convert to/from different representations, and rou…
you can't use exact fraction arithmetic to take a square root, which comes up, you know, just a little bit, in physics. Of course this is a problem for binary representations, too, but you might as well not start out with an input that is already imprecise.
In physics it is uncommon to have exact measurements for much of anything except integers. In physics, measurement error is usually a bigger issue than roundoff errors from floating point, so the non-existence of an exact floating point representation of the stated measurement is a non-issue.
In the real world, most cases that I'm aware of where we need exact base 10 calculations have to do with dealing with money in a single currency. You would be amazed how often square roots don't come up in this context!
Fractions show up as soon as you start doing currency conversions. (In fact the Euclidean algorithm for finding the GCD is believed to have been first developed by merchants for exactly this problem.) They are easy to add to a programming language, but you'd only use them in contexts (like finance) where square roots make no sense.
If you want to go beyond fractions to add square roots and so on, you can do algebraic numbers. This is a fairly specialized mathematical need, but Mathematica has done it perfectly well for decades.
For arbitrary real numbers, we're sort of stuck. We can come up with representations that can cover any real number that we can talk about. But we can't take 2 arbitrary representations of a real number and in finite time decide whether or not they are actually the same number. That said, Mathematica again solves this problem "well enough" for most practical purposes. See http://mathworld.wolfram.com/Ferguson-ForcadeAlgorithm.html for more.