I was a scout during the 1980's. The scout master I had must have been an idiot. He gave us a choice of those or our merit badge. Also in my troop you had to show that you knew all the requirements to get the badge or loop. I also remember how much of a pain those things were to get through the loops on the pants. I do not know if any other scout masters were confused on what they were issue for. but that would explain why they disappeared.
I remember having to light a fire with two matches, proper hand ax handling, and some of the first aid you had to do. What turned me off to scouting is transferring and being forced to attend a catholic church to stay in scouts. Also a new scout master that would not give out merit badges even though you finished them. I turned away from it and never looked back till my son was of age.