4.2.1 doesn't allow to have both CDE and TCE on same partition. While it is logical on read-only media as CD, it is not using r/w partions. For example USB setup with single partition (doesn't matter what type, FAT or native LINUX) logically would have a /tce dir and a /cde with core extensions. Of course it is up to the user not mess up /cde but same is valid for any other part of the system, so not a strong argument.
Having /cde & /tce on same portion would eliminate manual tweeking of installation, would make operation cleaner and would be more easy to understand for ordinary users and would make installation less complex.