The standard unit basic load (UBL) for an infantryman is 210 rounds, 140 ball (M855/M855A1) and 40 tracer (M856), so an infantryman's weapon does need to be able to stabilize tracer consistently.
Moreover, whatever happened in the 1980s, the choice to go with the 1/7 over the 1/9 was fortuitous, and along with the accessory railed upper receiver and the MIL-STD 1913 rail in general in allowing the M16 FOW to continue to evolve and remain effective outside its originally conceived operating envelope as designed.
The ability to fire non-standard ammunition besides the SS109, much of which is longer than a 1/9 twist can stabilize (MK 262 MOD 0/1, R2LP, 70 gr. TSX, 75 gr. TAP) has increased both the range and effectiveness of the platform, while reducing the barrel length and weight of the system overall to get the same or better results.
The whole 175m, why would they bother testing 600-800m, etc. is narrow thinking based on what you would use the M16A2 for - the standardization of the SS109 was not just for individual weapons, but automatic and/or suppressive weapons as well - nor is the concept of "area fire" as relevant in a civilian context, nor are most civilians concerned about directing fire, designating, adjusting fire, etc.
Moreover - just because EKIAs diminish beyond 175m doesn't mean that you shouldn't try to kill them if you can, and at the time the SS109 and M856 were adopted, what was believed to be the most likely threat was Soviet infantry, and there was a perceived need to be able to penetrate their armor at range.
None of which is to say that if 1/9 fits your use better, and you prefer 1/9 that there's anything wrong with that. If you don't ever shoot anything that requires a 1/7 twist and prefer 1/9 because you believe/perceive/it is more accurate with the loads you do shoot than 1/7, then it sounds like 1/9 is for you.
75 gr.-ish ammunition is available in "plinking" form as well, though, you're correct, it's not as cheap as the 55 gr. stuff out there - but if you prefer/desire to use more modern defensive/duty rounds, it's sometimes worthwhile to practice with a round that's closer to the actual weight of the ammunition you use for a couple cents per round more.
I prefer 1/7 because it literally allows me to shoot anything that will fit into the magwell of an AR15 and beyond. Meanwhile, I've also shot 45 gr. HP without any problems from 1/7 barrels.
~Augee