[1]: https://pantamera.nu/en/private-citizen/facts--statistics/de...
1) "when you are going there anyway", which many people don't anymore.
2) Yes, it's absolutely a big inconvenience; I remember those days, and it took 15-30 minutes each time, leaving aside the inconvenience of bagging and lugging them, and the extreme unreliability of the machines. Not going to happen.
A recycling bin that gets picked up alongside the trash bin is far, far more convenient. I live in a state that has a can/bottle deposit, and despite that I just toss them in the recycling bin. If there wasn't a recycling bin or the recycling bin didn't allow them, they'd go in the trash bin, because life is too short to spend any of it feeding plastic bottles into a machine.
My state also incentivizes recycling in other ways: trash bins are small with high fees, recycling bins are huge and free.