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Perhaps Halo pulled this off so well that no other publisher wants to touch it...

Halo does do this very well, but all kidding aside, I'm not sure why there aren't more competitors in this space. Halo parties are very popular, but many of us want more variety in split screen games. Be glad you have a 360... the guys at work with PS3s keep bemoaning the fact that they can't find 4-way split-screen co-op and deathmatch games.

 

EDIT: the PS3 owners at work complain they can't find "good" split-screen games.  I'll let them determine what's good/bad since I don't have a PS3 and can't really make a determination.