Earlier quoted context omitted.
> The ability of devs to collapse a bunch of commits into a useful summary is near zero right now You can get quite far with 'git diff START END'. Something more task-specific can probably be done with Emacs, Magit, Ediff mode, bash, elisp, etc. Even if you think collapsing commits by rewriting history is useful for making summaries, etc. what makes you think you can produce a more useful summary right now than that…
What makes me think I can write better code than the thousand people downloading my repo later? I don't, but somebody should do the summarizing, and it might as well be me. Smashing the diffs together gets you the least useful parts of a purposeful squash commit.
Should they? See my earlier point about gilding lilies and YAGNI ;)
Of course, there are always exceptions! The most obvious ones are processes which work per-commit, e.g. bisecting, conflict resolution, per-commit code review, etc. where having a bunch of interleaved "stories" can be tedious.