Key difference being, WAN-PHY does not provide synchronous timing, so it's not SDH/SONET compatible for strict definition for it, but it does have the frame format. And the optical systems which could regenerate SONET/SDH framing, didn't care about timing, they just wanted to be able to parse and generate those frames, which they could, but they could not do it for ethernet frames.
I think it is pretty clear, the driver was to support long haul regeneration, so it was always going to be a stop-gap solution. Even though I know some networks, who specifically wanted WAN-PHY for its error reporting capabilities, I don't think this was majority driver, majority driver almost certainly was 'thats only thing we can put on this circuit'.