That might give you a glimpse into why it's useful to split off different datasets. I might want to tune my database (/var/lib/postgres) for throughput, while my home directory is tuned for maximum compression & encrypted, while my public fileshares are unencrypted, etc.
Also it's often useful to have different partitions if you need different filesystems, not every filesystem is suited for every particular usecase. Also sometimes you're constrained by other software: for instance many older bootloaders would typically have very limited filesystem support; even today your EFI system partition needs to be FAT formatted, which should serve as an obvious reason why you'd want to segregate `/boot/efi` from the rest of your system.
Modern smartphones do this, on Android for example you are able to find a filesystem for system binaries generally mounted readonly, a filesystem for the base OS and system apps, another filesystem for user installed apps. If a rogue app fills the entire filesystem it's resided, the system apps can still function.
For the most part however people have decided that slicing up your disk into multiple partitions isn't worth the hassle anymore, and almost all distros just dump everything on a giant /.
If / or /var run out of space (even now) then lots of daemons get into quite a bit of trouble. Anything from hanging to consuming a lot of CPU in the disk allocator.
It's often not possible to ssh into a machine where / or /var has filled up.
There was also the problem of file system robustness. Whilst things were a lot better than the non-UNIX platforms of the day, things weren't quite as good as they are today. These filesystems often were not journalled. That meant that if you had a power failure you could lose the entire volume. (I've personally had at least one / partition be destroyed by fsck after a power failure. I was so, so glad I didn't lose /home. /opt and /usr/local as well!)
Depending on whether you were the user or the administrator dictates which partition you prefer to survive, but at least it adds some robustness. It's nice to have things separated based on how you will restore them. / and /usr will come from the vendor. /opt will probably be a whole load of different media from all over the place.
*Of course it was possible to have root and swap on NFS as well (for truly diskless).
The functional equivalent to this is iSCSI, which as far as I understand is similar to if not literally what AWS uses under the covers for EC2 block devices.
Back when disk-SSD hybrid storage was still a novel idea (~2006), one of the guys at Sun had an interesting demo with ZFS.
He first created a bunch of storage pools on a server on the east coast from iSCSI volumes on the west coast, install Postgres, and did a benchmark. He next created a pool with the same iSCSI pools but added a local SSD as a ZIL/zlog device (for caching), and ran the same benchmark.
The SSD-enabled pool has quite close to local-disk performance of a SAN.
Depending on your compute needs, it could have made more sense to do fully-remote X.
So if many people were running intensive like MATLAB or Mathematica, then root/swap-over-NFS made sense so that you could use your local workstations local CPU all to yourself(s) and not bog down the central server. If most people were doing modest things (xterm, mail, browsing), then running everything on the central server and displaying it on dumb X11 terminals wasn't a bad idea.
Caveat - run a Unix machine you don't care about (i.e. a disposable VM) out of disk space.
It's much easier to recover a machine if the storage is segmented. Yeah, a single partition is more convenient, but multiple partitions are more resilient.
Sun was hugely into NFS, which was both a blessing and a curse -- you'd spend 4-5 figures each on a fleet of workstations with only 105 MB local drives, and they'd tend to all end up hanging frequently, because of a server burp or network burp. It didn't even have to be a burp on a filesystem you were using -- it only had to be (stale) mounted.
(I'm not this old, but I had the excessively good fortune to have access to super-cool computers and Internet as a kid.)
A modern Windows install has something like 4 partitions these days for the c drive. Ones labeled restore, c, and I have yet to care to figure out the other two. On boot though you see just c.