I always assumed it was because FM station bandwidths (200kHz) are much wider than AM (10kHz). AM's 10 kHz chops off a lot of human-hearable frequencies.
AM doesn't use the frequency for modulation though so it shouldn't matter.
AM does use the frequency, it just doesn't need as much and uses it differently than FM. If it was all at a single frequency, there just be a single tone getting louder and softer.