Have you noticed that enabling distortion correction in camera significantly affects image resolution? Interestingly it happens not only in the corners where distortions are the worst, but even the center resolution suffers noticeably.
I take distortion corrections if it means a cheaper/faster/more usable/more compact lens design...
You can't make those cheap lenses nowhere as good as those optically corrected. I've looked at midrange zooms, and even 18-55, which doesn't have severe distortions to begin with, suffer noticeable sharpness deterioration everywhere in the frame after camera applies geometric correction.
There are two types of users (or more, I just think of two distinct types): those that seek perfection and those that seek to have fun.
My point merely was that, once you accept that 'good-enough' is 'good-enough', you have a lot more flexibility - in-camera corrections, JPG shooting, post-edit flows. Using a 'compromised' or 'flawed' lens design, but getting images that come out of it might satisfy those that seek to have fun. I think the typical consumer, using the camera for fun/hobby/non-commercial uses.
The effort to make non-compromised APS-C lenses leads to $1k lenses, and even those suffer from artifacts, especially wide open. If we accept FW corrections, we may have a line of $400 lenses. (e.g. compare E20 and E24Z). For the brand, I would welcome that. Cameras nowadays do have powerful processing engines and can do what previously was impossible or required specific work-flows. What is wrong with this? P&S cameras are doing it for years...
Now, if you want to use the system professionally, or commercially, and your only choice is a FW-compromised lens, than the trade-off can be negative. I do agree with you here. For these purposes, high IQ lenses should be available.
Perhaps future FE lenses can fill this purposes? At least for some FLs, these could be uncompromised designs?
Also, see below, which is the better image to you? Distortion corrections are very useful - not everyone has a T&S lens. Consider de-fishing techniques as well...
Though it doesn't have anything to do with this discussion, the first image looks better, because all corrected images are unnaturally distorted.
I know, I just wanted to illustrate that we sometimes do a lot to the image in post, not for IQ, but for other reasons - HDR, corrections, crop/highlight, vignetting, softening, portrait, sharpening, etc. Lens FW correction would then be just one factor. My images illustrate this to some extent. I have seen some great de-fishing applications too, not for maximum IQ, but for fun or dramatic effects...