Why does PW-5 get no respect?

The selection was based on much more than handling or aesthetics.
Cost, licensing for manufacture, home building options, long-term
factory support...

The point is not which glider was selected, but that any selection
would have failed. Perhaps the PW-5 kept the dream alive longer than
another, perhaps not. Unfortunately, the dream wasn't particularly
suited to the sport. Too few pilots, too many choices. As you
observed, for half the price of a PW-5, a newbie can buy a Libelle and
fly competitively in the sports class. Why buy a less desireable
glider at twice the price, then limit your opportunities for learning
(you need enough performance to keep up with your betters... it takes
time and proximity for their experience to rub off). We already had a
single-type class in the US. And while it was successful, it was
fueled more by camaraderie than competitive zeal. For a quarter the
price of a PeeWee, you could (and still can) join the fun. Though even
the 1-26ers are in decline, though no less enthusiastic.