We all love our conspiracy theories but....my rational guess is that at this point in time, it's cheaper and less risky - from an investment standpoint - to build a natural gas power generating plant closer to the "point of sale", than it is to build a geothermal plant that relies on the existing grid, to bring the product to market.
Money as its ways of finding its own level. If there was real money lined up behind the idea of tapping western geothermal and competing forces were conspiring to forestall them, we would've heard about it by now.