Looks like they designed it to work with the shared FRS/GMRS frequencies which are 10.5K bandwidth and didn't care about the fact that the GMRS-only frequencies can legally do 16K bandwidth. Oh well. That's kind of a bummer if you care about 100% modulation compatibility with 16K systems and radios. These new radios will sound like 50% modulation to those.
I'll stick with my GM-300 radios
"Wide" bandwidth on the GMRS primaries authorized 20kHz bandwidth on a 25kHz spaced channel. Most Part 90 gear in "wide" mode operates with 16kHz occupied BW while still operating on a 25kHz spaced channel. Ancient Part 90 equipment operating at 20kHz occupied BW did 5 kHz deviation with highest modulation frequency of 5 kHz (20K0F3E). Newer Part 90 gear with 16kHz OBW does 5 kHz deviation with a highest modulation frequency of 3 kHz (16K0F3E).
The current crop of 22-channel bubble packs operate in narrow mode on all 22 channels, with 2.5kHz deviation with a highest modulation frequency of 3.125 kHz, occupying 11.25 kHz of spectrum (11K2F3E), which fits into a 12.5kHz spaced channel. IOW, the bubble packs are operating narrow (11K0F3E) on the GMRS primaries, and they are legal.
GMRS can legally operate "wide" or "narrow" on the GMRS primaries. I prefer to go with the flow of Part 90 and operate narrow on the GMRS primaries because I'm using good Part 90 commercial gear. All of my adjacent channel splatter problems from local bubble packers 12.5kHz away from the GMRS primary channel I'm using went away completely as soon as I made the switch from wide to narrow mode. A few simple programming changes was all that was required. Note that all Part 90 commercial gear manufactured since about 1997 has been required by FCC rule to include narrowband capability. Any used Part 90 gear less than 20 years old will have narrowband capability. My repeaters benefited too by switching them from wide to narrow. My repeaters no longer got hammered by FRS activity local to the repeater on the upper FRS channels adjacent to the repeater input. Operating in narrow mode tightened the receiver up. I noticed no difference in coverage by switching them to narrow.
Since the Midland radio looks like it is based on a commercial design for Part 90, I'm not surprised it's narrow-only.