astronomy - Why are the orbits of planets in the Solar System nearly circular?

Except for Mercury, the planets in the Solar System have very small eccentricities.

Is this property special to the Solar System? Wikipedia states:

Most exoplanets with orbital periods of 20 days or less have near-circular orbits of very low eccentricity. That is believed to be due to tidal circularization, an effect in which the gravitational interaction between two bodies gradually reduces their orbital eccentricity. By contrast, most known exoplanets with longer orbital periods have quite eccentric orbits. (As of July 2010, 55% of such exoplanets have eccentricities greater than 0.2 while 17% have eccentricities greater than 0.5.1) This is not an observational selection effect, since a planet can be detected about equally well regardless of the eccentricity of its orbit. The prevalence of elliptical orbits is a major puzzle, since current theories of planetary formation strongly suggest planets should form with circular (that is, non-eccentric) orbits.

What is special about the Solar System that orbits of planets here are nearly circular, but elsewhere they are moderately or highly eccentric?

Answer

This was previously a comment to space_cadet's answer but became long (down-vote wasn't me though).

I don't understand space_cadet's talk about unstable orbits. Recall that two-body system with Coulomb interaction has an additional $SO(3)$ symmetry and has a conserved Laplace-Runge-Lenz vector which preserves the eccentricity. Because interactions between planets themselves are pretty negligible one needs to look for explanation elsewhere. Namely, in the initial conditions of the Solar system.

One can imagine slowly rotating big ball of dust. This would collapse to the Sun in the center a disk (because of preservation of angular momentum) with circular orbits and proto-planets would form, collecting the dust on their orbits. Initially those planets were quite close and there were interesting scattering processes happening. The last part of the puzzle is mystery though. If there were still large amount of dust present in the Solar system it would damp the orbits to the point of becoming more circular than they are today. The most popular explanation seems to be that the damping of the eccentricity was mediated by smaller bodies (like asteroids). Read more in "Final Stages of Planet Formation" - Peter Goldreich, Yoram Lithwick, Re'em Sari.