Because sometimes it's better not to. Sometimes it's inconsistent with our definitions.
Just like sometimes we agree that you can't divide by zero, and sometimes we agree that you can. Sometimes infinity is an actual value (say, in the extended reals), and sometimes it's just a symbol for "unbounded". Sometimes we agree that you can't take the square root of a negative number, and sometimes you can. Sometimes we use the axiom of choice, and sometimes we don't (and you can have an awful lot of fun either way!)
Mathematics is contextual. How various operations behave depends on which axioms and conventions are being used.
> Because sometimes it's better not to. Sometimes it's inconsistent with our definitions.
I'd love to see even one example of 0^0=1 being inconsistent with a definition. The closest I've ever seen is that it bothers people that for reasons of their own had their hearts set on (x,y) -> x^y having no discontinuities...
Perhaps it's more precise to say "Because sometimes it's better not to. Sometimes there is no canonical choice that follows from our definitions, and it doesn't help to assign an arbitrary value that doesn't help solve any related problems."
What is "x" equal to? In general, I mean, not in the context of any equation like "x+1=2". You could say "x=7 in the study of free variables over integers when no other constraints are given", and that is completely consistent with the rest of mathematics, and yet would not be particularly useful and introduces an ugly (philosophical weasel word, yes) asymmetry in the theory (I'd say it introduces a gauge invariance (https://secure.wikimedia.org/wikipedia/en/wiki/Gauge_theory), but I'm really not qualified to discuss that in a rigorous way.)
Someone like Scott Aaronson could put this claim on more solid footing, but I would state that, intuitively, "assigning a value to an indeterminate form leads to a more complex definition of a mathematical system" in some formal complexity-theory sense.
Because sometimes it's better not to. Sometimes it's inconsistent with our definitions.
Just like sometimes we agree that you can't divide by zero, and sometimes we agree that you can. Sometimes infinity is an actual value (say, in the extended reals), and sometimes it's just a symbol for "unbounded". Sometimes we agree that you can't take the square root of a negative number, and sometimes you can. Sometimes we use the axiom of choice, and sometimes we don't (and you can have an awful lot of fun either way!)
Mathematics is contextual. How various operations behave depends on which axioms and conventions are being used.