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Well technically you are right that cursor buttons could be used.
The trouble is that they require a lot of force to register a keystroke. Therefore repeated left/right strokes would be painful and not nearly as easy as using a mouse pad or a regular mouse. It would be simply too slow.
Now I suspect it has more to do with screen refresh limitations. Scrolling would probably not be very smooth.
So they probably didn't bother with a better pointing device due to screen limitations. Like you said, software will be improved. It is the hardware that limits what can be done.
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