If you used uncommon colors in your program on - for example - a Sparcstation 20, the palette would shift every time you moved the mouse in or out of your window. It's difficult to describe to someone that's never seen it, but it's unpleasant. No one mourns the death of pseudocolor.
Windows never used pseudocolor as far as I know.
#124356 might look different on one monitor or workstation compared to another.
Having colour names which are calibrated for the device makes a lot of sense. Assuming those colour names are actually calibrated, which as the article also mentions, so often wasn’t the case.
As an aside, this is a big problem in DTP where your display should match the page. However you obviously wouldn’t use colour names in that specific industry because you’re dealing with a vastly greater range of colours and shades.