Maybe its me, but i believe the primary or secondary reason for screen is different screens had different resolutions and color depths, both of which dont really exist these days on any major OS.
It feels like the concept faded with the advent of large VRAM and fast fill rate graphics accelerators. I remember old X Window System workstations supporting multiple concurrent windows with different color depths and modes. The hardware would compose windows from memory during display scan-out, all to save VRAM.
I used X11 on some 8-bit framebuffers back in the day, and I remember the palette changing depending on which window was in the foreground. The foreground window would have proper colour, and the background ones would generally have crazy clashing colours.
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