I think the main issue with Monotone was the performance. Linus also hates databases and C++.
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Hoare didn't come up with this idea either, but he did apply it to version control. He had potentially been influenced by his earlier work on distributed file systems and object systems. Here's his 1999 project making use of hashes: https://web.archive.org/web/20010420023937/venge.net/graydon...
He was in contact with Ian Clarke of Freenet fame (also 1999). There seems to have been a rise in distributed and encrypted communications around the time, as kragen mentions in his other post.
BitTorrent would also come to use hashes for identifying torrents in a tracker, and would come out in 2001, created by Bram Cohen, the author of the post here :)