I wonder why even have a max line length limit in the first place? I.e. is this for a technical reason or just display related?
I wonder if the person who had the idea of virtualizing the typewriter carriage knew how much trouble they would cause over time.
It would’ve been far less messy to make printers process linefeed like \n acts today, and omit the redundant CR. Then you could still use CR for those overstrike purposes but have a 1-byte universal newline character, which we almost finally have today now that Windows mostly stopped resisting the inevitable.
Now, if you want to use CR by itself for fancy overstriking etc. you'd need to put something else into the character stream, like a space followed by a backspace, just to kill time.
In any event, wouldn't you have to either buffer or use flow-control to pause receiving while a CR was being processed? You wouldn't want to start printing the next line's characters in reverse while the carriage was going back to the beginning.
My suspicion is there was a committee that was more bent on purity than practicality that day, and they were opposed to the idea of having CR for "go to column 0" and newline for "go to column 0 and also advance the paper", even though it seems extremely unlikely you'd ever want "advance the paper without going to column 0" (which you could still emulate it with newline + tab or newline + 43 spaces for those exceptional cases).