Per Castrols website...
The low temperature
viscosity of the oil is a measurement that simulates starting a car on a cold winter day. That value has the letter “W” after the number and has a dash after the W. For example, if the oil is a 5W-30, the
5W part describes the viscosity of the oil at low temperatures. The lower the number, the faster the oil will flow at vehicle start up.
https://www.castrol.com/en_us/united-states/home/products/our-brands/viscosity-grades.html
It is the dynamic viscosity measured using a cold cranking simulator. It is not Kinematic viscosity that is used to determine grade.
As explained, it guarantees you that oil will be pumpable at -30 in the case of 5W or -35 in the case of 0W.
There is also a pour point that plays the role in very cold scenarios, but that is a really non-scientific way to determine cold performance. But, for example, if I were living in Fairbanks, AK, besides 0W, I would make sure the oil I use also has a pour point as low as possible, which also indicates a lot of PAO in the oil.
As for 5W50, there are numerous reasons why 5W50 is not a preferred oil.
1. 5W50 has a lot of VI. It will shear down fairly fast in most oils (some, Motul 300V, Redline 5W50, HPL are a different story).
However, manufacturers who make vehicles that need that grade probably want high HTHS more common in very good 5W40 oils, around 4cP. Because 5W50 will have HTHS around 4cP, it is safe to assume that regardless of shear, HTHS will stay high enough, probably 3.7cP and higher. They are assuming the owner will just buy average oil, so they push the grade. This is why approvals matter in Euro vehicles, because you know you are buying oil that has to meet a certain standard (does not mean there are no better oils, even if approved for the same standard).
For example, BMW used 10W60 in some M engines. In reality, after 5-7.5K, and definitely at 10K, those oils would shear down to thick W40. Using some extremely stout 5W50 or 10W50 like HPL, etc., means over OCI they stay in grade because. base stocks etc.
2. Power. Higher HTHS, more resistance = more heat.
3. Fuel efficiency: Higher HTHS=lower mpg.