Because pixelation doesn't attract attention as much as black box and is therefore a better placeholder. A black box with sharp edges has much more contrast than all the legit elements in the image and becomes visually dominant whereas typically you want to attract attention to something else on the page.
For a similar reason, designers use "lorem ipsum" placeholder text rather than all-white or all-black placeholders when mocking up a layout
Boom, startup idea right there. Provide secure-pixelize as a service, and monetize by selling on the side whatever info was sensitive enough for people to want to hide
For a similar reason, designers use "lorem ipsum" placeholder text rather than all-white or all-black placeholders when mocking up a layout