I find this interesting - why only one more byte of overhead? That would've limited string lengths to 256. So 2 bytes would seem the minimum, and even then, how do you go to 4 bytes once memory becomes cheap without breaking everything? Using NUL-termination, the upper bound for a string is effectively the amount of memory the OS is willing to give you, and code can keep working without modification for decades.
Am I missing something here?