> Isn't the oils and extracts that solution for the long term storage?
Yep, and you will see distillate used for things like edibles/drinks/vapes.
This has two problems (in my mind), but both the same cause...consumers are picky.
First issue is most states require the date of extraction to be listed on the product packaging. If they see a really old date, they get sketchy about it. (ex: I have recently got some R&D stuff from a grow, and the extraction date was listed as February 2022 and that set off alarm bells in my head, even though it's perfectly fine like you mentioned.)
The second is a group of issues in consumers minds and they are all closely related. Distillate doesn't have all the terpenes the other forms do (and therefore removes the 'strain specific' effects that some go after), so you lose out on the entourage effect[0]. Some grows will start re-adding the terpenes to distillate using cheaper plant based (tree in some cases) terpenes and again, people are picky and this turns them off of the product.
That is likely an arbitrary date chosen by the state regulatory police force and not really accurate and it's not well studied. So if your buddy offers you some expired gummies 3 months old "or I'm gonna toss it out" don't pass them up.