Good question. There seems to be something intrinsic to the construction of these diodes that limits single mode CW operation to generally less than 1/4 watt.
Most of the red diodes out there are using AlGaInP 'recipes'. Recently GaN diode recipes have been developed - these are used to create blue (405 & 440 nm) diodes, and recently green diodes. For whatever reason the GaN chemistry and construction methods seem to be able to offer higher CW powers.
Beyond theory there's a lot of practical and 'proprietary' (secret) information that manufacturers will not divulge about these diodes. Meaning I don't know what the limiting factor is in creating a high power red, and I doubt many other people do either

At this point if you want more than 250mW of red you're looking at DPSS or multimode diodes (bad beam specs).
I'm hoping the nascent laser projector market will create demand for high(er) power single mode red diodes. Time will tell.