Huh now I'm curious where you live that they don't do this? In Canada 50s and 100s come out of the ATMs. In Japan, you get 10,000 yen (~$100 USD) in ATMs.
In Boston, in the mission hill neighborhood, I was really surprised that the Bank of America ATM handed out $10 bills instead of $20 ~5-6 years ago and that was the only ATM I've encountered that does that.
That said, it seems like all of the Bank of America and TD Bank ATMs I use in Boston are starting to let you choose the bills you want on screen. Was recently in Montreal and had the same experience there too so I'm guessing that's what ATMs are trending towards.
TD Bank around NYC has started to do $50s by default in high-demand locations, obviously so the machine needs refilling less often. One workaround hack is to withdraw a number like $80, to force the transaction into $20s instead. Although I've never yet had a problem spending a $50.
Also, ATMs on casino floors in Vegas dispense $100s.
Interesting that it's a Canadian bank (TD) doing this. I wonder if they're using the same ATM tech in the US as they're using up here.
I've noticed a couple of banks in Canada where, if you ask the ATM for $100, it'll ask you if you want a single $100 bill, two $50 bills, or five $20 bills.