Earlier quoted context omitted.
Copying short strings does not necessarily involve an allocation in implementations using short string optimization. Shooting down the cache line in a remote CPU that happens to have used a frequently-used string recently is absurdly expensive by comparison.
The COW and short string optimizations are not mutually exclusive. If we assume short string optimization is implemented both before and after, then we are back to comparing the atomic increment to allocation. And different allocation approaches can make the cost of heap allocation differ quite substantially. I'd fully expect that some allocation approaches are cheaper than the cache line invalidation from atomic inc…
My impression through the fog of history is that what happened was a really clever GNU person with little foresight and no access to an SMP system implemented std::string with CoW. Its performance in practice was so poor that the standard committee intentionally changed the standard to make it an illegal implementation, thereby eradicating the GNU CoW string. There was no higher principled logic.