I used to really wonder why Lux kept offering woven hoses long after everybody else had gone to vinyl.
Planned obsolescence, like Charles said, no doubt played a part. Without the slow deterioration of the woven hose, there was not much that would cause an Electrolux to lose its performance and trigger a call to your friendly Electrolux man.
The other reason (I believe) was the investment Electrolux had made to produce their own woven hose, tapered to prevent clogging, with internal conductors for the power nozzle. It had to have been significant, so they were slow to re-tool for vinyl hoses. Perhaps they had to make so many thousands of hoses (over a period of years) to break even on the manufacturing equipment.
Planned obsolescence in this case strikes me as a little less nefarious than the kind of planned obsolescence (much more common today) that causes the entire product to be junked, due to a lack of (or prohibitive cost of) replacement parts.
Plus, the woven hose, color-matched to their models, look so much nicer!