The early limit was because high voltage DC required producing it at the generator, whereas you could produce high voltage AC by generating at a lower voltage and then stepping it up with a transformer for long distance transmission.

The rules are changing because of switchmode voltage conversion, using transistors to switch the voltage at a high frequency, where the magnetics (transformers, inductors) can be much smaller and more efficient, then converting back to DC. This is how virtually all smaller power supplies have been made for years, the only question (which I don't know) being how far along we are at reaching the voltage levels of long distance transmission in this way.

I'd think that hustling us towards DC with electronic voltage conversion would be a reasonable strategic goal for dealing with the transformer problem, worthy of support by a government.