> There's no point in a carriage return without a newline.
Progress bars. And TUIs in general, CR without LF is still quite handy for them. But even for paper teletypes, it has marginal use of correcting typos: print spaces over the correct text, overtype the corrections on top of mis-typed letters.
> When ASCII came about, it wasn't really about text files. Computers didn't talk to each other back then.
By the time it was finished being standardized, they did. One of the earliest RFCs, RFC 20 talks, among other things, about using ASCII in "HOST-HOST primary connections". Actually, reading the descriptions of the "format effectors" in that RFC is quite illuminating, it explicitly mentions "display devices", that is, "glass" terminals. And it also talks about the possibility of using LF as NL but notices that it requires exact matching of the semantics in both sender and receiver. But even without networks, exchanging data on magnetic/paper tapes, punch cards etc. between the computers was already a well established thing. After all, they did not invented and standardized ASCII simply because they had nothing better to do with their time!
Don't get me wrong, I too think that having a single-character new line delimiter/line terminator for use in text files is better than using a two-character sequence cobbled together. But many disagreed, and all of the RFC-documented protocols up until very recently use CRLF as line separators, so this convention obviously used to have a rather large support. Now, whether LF-to-CRLF translation, and line discipline in general, belongs in the kernel is a different question; I personally think it should've been lifted out of there and not conflated with serial port management but alas, it is what it is.