I'm not even sure if in hindsight the wrong decision was made.
Unix time is 32 bits, so I guess Unix time was invented a bit later, but around 1970, when Unix was written, RAM cost around $700k/megabyte, or, ballpark, $1/byte (https://jcmit.net/memoryprice.htm)
Even if you had infinite memory, you couldn’t use much of it in your computer. The PDP-7 that Unix started life on topped out at 144kB, the PDP-11 that it was soon ported to at 288kB (64k 36-bit words), and many installs wouldn’t have that.
~Not enough people in 1985, I guess. They seem more concerned with leap years than anything. https://groups.google.com/g/net.bugs/c/ZGlqGwNaq3I
But at least Jeff bezos is putting his fortune into an immortal clock in the desert (I'm being sarcastic but the desert clock is actually real and supposedly a gift to future generations as if measuring time wasn't a problem that stone-age civilizations all over the world were able to solve independently).