INS that doesn't drift pretty much immediately is expensive and needs periodic fixups, and the moment GPS became available it pretty much dropped off anyones purchase plans (as it can't be used as backup for GPS unlike VOR/DME)
While INS is not simple, it's also not that difficult to implement. As even the cheapest drones that can hover show new MEMS sensors are accurate enough to work with a proper filtering.
I did some prototype INS system as my master's thesis 10 years ago, the code was quick and dirty and even then the accuracy was like 30 meters after an hour of walking around with the device.
That is surprising, you must have had an extremely accurate accelerometer and gyro, or employed tricks [1]. There are two problems with determining position from acceleration measurements:
1. You're integrating twice (acceleration to obtain velocity, then velocity to obtain position). So if you have any noise or error, you're integrating that, and integrate that again. Hello, parabola.
2. Gravity. It's strong. So you have to subtract it (as it induces an apparent acceleration upwards).
If the difference between actual down and where your model thinks is down is just a fraction of a degree, you'll be totally off within minutes.
> As a concrete example consider a tilt error of just 0.05 [degrees]. This error will cause a component of the acceleration due to gravity with magnitude 0.0086 m/s2 to be projected onto the horizontal axes. This residual bias causes an error in the horizontal position which grows quadratically to 7.7 m after only 30 seconds [and thus to 770 m after 5 minutes, unless I'm mistaken, and 110 km after an hour]
[1] such as assuming that your foot has velocity zero while on the ground, which does not hold when you're in an elevator, for example, and which you can't use in a drone without some serious sensor fusion.
I had 2 tricks - really high-order filter borrowed from some paper and the assumption that a walking human doesn't gain constant acceleration. Even in an elevator you stop on a floor which resets your speed to 0.
I agree that there is no way you could extend this directly for flying, but with modern devices and things like ground-distance radar, relative airspeed indicators and so on I don't think it is beyond the realm of possibility. Plus we have detailed hightmap of the world, which, when combined with a radar should allow for terrain tracking. That makes the accuracy of sole INS much less crucial.
Thing is, it has to work over atlantic/pacific/cross north pole routes, etc. We're talking multiple hours and long distance, possibly with a lot of turbulence (even for GA, which actually gets less steady flight so...).
And then it needs to provide guarantees about said navigation, guarantees that those drones do not need.
This also depends on the plane. For larger commercial applications, you need to have INS. You want to use a combination of sources ideally, since INS is accurate for a shorter period and GNSS/GPS for longer periods(often GPS/GNSS is only updated every second). Plus a lot of newer units have a much smaller drift. This FOG has a drift of 0.1 deg per hour, which is quite good (https://www.advancednavigation.com/solutions/spatial-fog-dua...).
I did some prototype INS system as my master's thesis 10 years ago, the code was quick and dirty and even then the accuracy was like 30 meters after an hour of walking around with the device.