Why is READ COMMITTED a common default transaction isolation level?
Though, I don't remember any reference mentioned in BOL thus can't provide it here but as per my understanding it is related to locking. Higher level of isolation level can cause locking issues. READ COMMITTED ISOLATION is more towards write locks than read, which fits good in OLTP environment when compared to OLAP. Commercial databases decides default isolation level which fits perfect for their internal algorithm. Choosing isolation level depends upon how RDBMS wants to deal with locking and care about reading correct data. Most of the RDBMS prefers READ COMMITTED for faster read, performance and to minimize locking.

A lower isolation level increase concurrency and descrease waiting for other transaction but increase the chances of reading incorrect data.
However, a higher isolation level decreases concurrency and increases waiting for other transaction, but decreases the chance of reading incorrect data.

As per Wikipedia 


  The default isolation level of different DBMS's varies quite widely.
  Most databases that feature transactions allow the user to set any
  isolation level. Some DBMS's also require additional syntax when
  performing a SELECT statement to acquire locks (e.g. SELECT ... FOR
  UPDATE to acquire exclusive write locks on accessed rows).
  
  However, the definitions above have been criticized [3] as being
  ambiguous, and as not accurately reflecting the isolation provided by
  many databases:
  
  This paper shows a number of weaknesses in the anomaly approach to
  defining isolation levels. The three ANSI phenomena are ambiguous.
  Even their broadest interpretations do not exclude anomalous behavior.
  This leads to some counter-intuitive results. In particular,
  lock-based isolation levels have different characteristics than their
  ANSI equivalents. This is disconcerting because commercial database
  systems typically use locking. Additionally, the ANSI phenomena do not
  distinguish among several isolation levels popular in commercial
  systems.


You can read the complete synopsis here.