It’s difficult to change long-time traditions.
Figure skating was first introduced in the 1908 Summer Olympic Games and moved to become part of the Winter Games in 1924.
The sport was developed in an age when the knowledge about sport related injuries was very basic.
Dancing is more graceful when performed on high(er) heels.
By now everybody is aware of the strain on the muscles, bones, and tissues in the feet and ankles, resulting in chronic foot pain or sudden injuries that may require surgery, caused by long term wearing of any sort of shoes with high heels.
Figure skaters even go a step further.
Wearing boots with high heels and practically no shock absorption, they perform jumps, landing on one foot, on a very hard surface.