Re:Please tell me why this isn't true?
I personally like both places because they are different, but like Sue said, the perfect place to vacation depends on the individual. Puerto Escondido is smaller and more laid back than PV, and without the big tourist crowds and higher prices. The hotels are more downscale than the PV resorts, but some are still nice. Surfers will appreciate the large ocean waves in the area. PE caters to a very different kind of traveler than PV.
I think that transportation to Puerto Escondido is more difficult than transportation to Puerto Vallarta, especially when you consider that there are several direct flights and several cruises from the US/Canada to Puerto Vallarta. Maybe that keeps its tourism to PE from other parts of North America down. If tourism to PE exploded, it would soon develop into another PV and what you find charming about it would be lost forever.