Why don't Arduinos run on 5V

I assume it is because the voltage regulation uses up a volt or so as mentioned above.

http://arduino.cc/en/Main/ArduinoBoardUno

The board can operate on an external supply of 6 to 20 volts. If supplied with less than 7V, however, the 5V pin may supply less than five volts and the board may be unstable.