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I can think of a few reasons: First, this was a decade and a half ago. SHA was slow, open source SHA implementations were rare at the time, crypto had a stigma due to export restrictions, and was generally problematic to work with due to limited hardware support and speed. Second, several different implementations were needed and they needed to be different enough that a simple pattern search would not find them all.…
2001 obviously makes a big difference. I'll pay more attention to dates now.
That said, I don't understand why you wrote "data you don't actually need to hide". Wasn't that the point? I mean, holding off cracks for a month or two was good, but wouldn't holding them off for years be ideal?
And yes (I can't tell if you're being disdainful or honestly amazed) but we do now live in a world when you don't have to worry about performance implications of using SHA in all but the most resource constrained environments (and even then, SHA hardware acceleration is often available).
But you make some other good points I had not considered.