Microbats in general are not well-represented compared to megabats because megabats are easier to care for.
Objection, your hono(u)r!

This depends a lot on the species in question. If you look at the larger picture of Megabat species variety, only few megabat species managed to establish themselves in sufficent numbers in captivity (Rousettus aegyptiacus and Pteropus rodricensis, in particular, come to mind), and without LBC's constant coordination, breeding success of these species might not be where it's today (not being that regular in all these species, btw.).
It's good to see US zoos like Columbus or Animal Kingdom investing time and effort in showcasing megabats in educative shows; this still has to develop in Europe (Noctalis, Gelsenkirchen, Chester, Jersey), where they either serve as "decorations" for the upper levels of rainforest exhibits or as fluttering "scary" black shadows in nocturnal houses. As for conservation bat breeding programs, don't forget Jersey's Livingstone's fruit bat (Pteropus livingstonii) project.
Insectivorous microbats can live for longer periods of time in captivity if professionally cared for; I happen to know several specimens of European species kept in captivity due to not being fit for release and used for educational purposes. The labour input, however, and diet requirements as well as legal issues makes keeping such microbats unattractive for zoos.
The Noctalis House in Germany actually solved the presentation problem TMO mentioned quite nicely by showing closeup videos of their Seba's on large video screens. And allowing random visitors in to 200+ bats like done under supervision at the Grzimek House in Frankfurt also leaves quite an impression on the visitors.
@temp: I wouldn't say that pale spear-nosed bats are well established in European zoos; take a look at ZTL to see what I mean. Few institutions have larger colonies. Glossophaga soricina are more common, but their population can dwindle quickly if not well kept for. There are indeed some bat species kept at European universities, including pale spear nosed bats, mustached bats, a single ancient Megaderma lyra and Common vampire bats, established by Prof. Uwe Schmidt in Bonn. But since the latter retired several years ago, I haven't heard much more in regard to that colony, and have even seen some specimens advertised for sale. The groups at Berlin and Poznan aren't vividly reproducing, as far as I know, but as Szeged brought in some fresh ones from the USA (where they breed well), this might not be the end of vampires in Europe.
There are several reasons why you won't see many if any African or Asian microbats in European zoos. For once, unlike the Phyllostomidae, the majority are insectivorous, leading to the mentioned issue of labour intensive feeding etc.. Secondly, some species are just not fit for captivity due to their hunting/flight behaviour; in Europe the Great Noctule is a good example for this. Thirdly, lots of red tape and the fear to bring in lyssavirus, coronavirus etc. into the collection. Megaderma lyra, for example, would be an excellent addition to collections due to being a carnivorous ambush predator that spends most of its time at a vantage point looking for prey (such as mice or froglets). However, India and Sri Lanka forbid its export, and the specimens existing at European collections failed to reproduce sufficiently (maybe temporary seperation of the sexes might have been useful). Australia's Ghost bats might be another highly interesting species, but Australia (rightfully so) is more interested in establishing a local breeding population. And given that the species is allegedly (haven't worked with them yet) easily stressed, it's maybe not fit for long-distance travelling.
And finally: yes, microbats aren't too spectacular for the majority of visitors. However, institutions like Bat World Sanctuary, Noctalis, Fledermauskeller Zitadelle Spandau or LBC do show that people are genuinely interested in bats; you just need to know how to present them.