Probably because you're looking in the wrong places. It can be compressed just like DEUT, so it's been used as a weapon plenty of times.
I use it as a bunker material, and I had a bomb based on that principal on my old account bowserinator and it would use super heated expanding MERC to melt a city... but it's too laggy and not very epic as other bombs.
yeah, tried it and see what you mean, its a cool concept though. too bad I am not the first to build it