AS:
FPS's like Medal of Honor get far more resources allocated to them than SH4, because far more people buy FPS's than buy subsims.
SH4's budget is likely to be only a fraction of Call of Duty III's.
Also, in an FPS, the only thing the game has to calculate is the immediate action around the player. The U-boat in MOH was a static 3D enviroment with no working controls (not even hatches if I remember correctly.) And it wasn't rocking around either.
In SH4, the game has to continuously calculate the movements of dozens of ships. This takes processing power, which leave less power available to calculate and redraw 3D environments such as the interior of the boat. Turning SH4 into an FPS like experience (walking to your sub, boarding it and moving around inside it) takes processing power away from the strategic part of the game.
Why do you think 1914: Shells of Fury doesn't have a 3D interior, despite being a later game than SH3? And SH3 does have a 3D interior? Answer: The dev team of 1914: SOF had less resources (money and time) to create the game.
SH4 itself is only a budget game compared to a leading FPS like Call of Duty III.
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