why no formatting options for "formatted" notes??

There’s no ruler and no formatting options available for formatted notes, even though if a note is imported as a formatted note, one can use text formatting and lists (with difficulty).

Why is this so? Why can’t formatting be possible in other formats besides rtf such as markdown and formatted, as others have requested?

macOS’ text engine doesn’t support this and formatted notes became popular just recently. But it’s at least planned for future releases.