Kevin, there are many reasons...
...some of which are mentioned in the other posts, while others are only implied. And since we're just finishing up two years in N Europe, I can assure you the preference you mention is quite prevalent almost everywhere (tho' relatively less so in England).1. Small boat sailing programs are a more common way for sailors to begin sailing in Europe...so the tiller is the default starting point and therefore, psychologically, seems 'right'. In North America (NA), many of us start out on bigger boats...where wheels are more common in NA to begin with.2. Hull forms are almost universally fin with skeg (usually, semi-balanced) rudder over here, so the weather helm on the typical boat is less than if it were a barn door rudder. Tillers suit the underbodies of most boats and, conversely, hull forms are designed with a tiller in mind, even if a wheel can be retrofitted for export (H-R, Malo, Najad are all examples of this).3. In defiance to logic, cockpits are used heavily in Europe despite the seasonal climate and often grey/cold/wet weather. It's pretty rare to see a cockpit not (temporarily) enclosed once a boat arrives at a marina or after its anchored. Meals are eaten there, socializing with evening coffee, and lazy mid-morning breakfasts are all the norm in an enclosed cockpit (which can be erected in only a few minutes or folded away as quickly). A tiller makes that space far more functional for those purposes. (On the Gulf Coast and along the SE U.S., we'd all die from suffocation if we erected an enclosure most of the year!)4. Altho' one sees the same long-term trend to larger boats in N Europe that we see in NA, it isn't happening as quickly nor as comprehensively; many boats are still 8-10M LOA (for both cost and berthing reasons). These boats just naturally are more suitable for tiller steering and I think many N European sailors would feel someone was trying to impress if they put an unnecessary wheel on a boat like that.5. Given the climate, N European sailors have to really enjoy sailing in order to choose that activity and suffer the much higher costs involved. And the enjoyment available in sailing is clearly more accessible when using a tiller than with one's hand on a wheel. It's a more sensual, more direct experience.6. Club and other kinds of informal racing is pretty common here, much as it used to be in NA. Racing with a wheel would seem odd to many.7. Short sailing seasons and, usually, long winters where boats get a great deal of care and suffer less extreme use, result in boats lasting a long time while looking almost new. This in turn results in a much longer time for a shift away from any trend to take effect.I'm sure there are other reasons, but these are the ones that stand out in my mind.Jack