Just like the "water carburetor" and other miracles that never materialized, the problem is that the alternative is cheaper and simpler (which means cheaper).
It doesn't sound expensive to add water injection to an internal combustion engine, until you have to make it work in production, with end users.
YOU can make it work, because you are motivated, but what about the guy who buys it because it's cool and then forgets to fill the system. Sure it's easy to add programming to work around this condition, but is it easy to integrate and test?
Anyway, crude oil is very, very cheap, and very easy to integrate into a production process. Waste plastic in the recycling stream is dirty and heterogeneous in composition and size, which makes it hard to integrate into a production process. Not impossible, but more expensive, which means that no one will do it without outside compulsion (and maybe not even then).