Fun question. Both rig style have been around for many years. And while the fract is clearly the performance rig of choice now, it's had an interesting evolution.
First some tech background; fractional rigs are described by what percentage up the mast the forestay attaches. This started out at 3/4, went to 7/8, and now lots of boats at 9/10s. More on that later.
As other have noted, fract rigs came about as a way to bend the mast to create sail shape. While this is possible on masthead boats (think C&C babystays) it was much easier with a fractional boat, in particular ones with aft swept spreaders.
This was known in the 70 and 80, but why so long to take off?
In North America in particular, fractional rigs were penalized by handicap rating systems that measured rated sail area by a boats JIPE numbers. Doing so rewarded huge headsails and tiny mainsails. That's why use used to see masthead boats with 180% genoas and dinky mains. That era has passed but the effects linger in production design here.
In Europe where formula-based rating are more popular, fractional boats took over and most have been so for over 30 years.
Racing for sure; I'd have to guess that the last serious race boat designed with a masthead rig was about 20 years ago. Again its a C&C (99).
For cruisers the advantage can be sail handling; in the past fractional rigs promised smaller headsails and maybe just one on a furler. And that's true.
Nowadays the difference is even more clear for both racers and cruisers, with the advent of the non-overlapping rig.
Designed tall with enough sail area to power the boat in almost all conditions, it only flies a jib and a powerful main. De-powering is done by reefing alone; the jib flies in most sailable conditions.
What also has happened is that with the 9/10s rig and moving the mast aft, the jib is almost the size of the main, creating a very powerful and adjustable sailplan. As a plus and by design, tall high-aspect sails are more powerful on an area by area basis, making tall jib and main better for racers then a squatter genoa.
Its interesting to look at the Beneteau First 30 as it evolved, from a genoa driven masthead rig from the 70s, to a fractional but still genoa boat of the 90s to the very modern non-overlapper of today. Look at how far aft the mast is, creating a huge jib.