Holy cow, I wrote a book!
If you go to the various internet protocol documents, such as
RFC 0821 (SMTP),
RFC 1939 (POP),
RFC 2060 (IMAP),
or RFC 2616 (HTTP),
you'll see that they all specify CR+LF as the line termination
So the the real question is not "Why do CP/M, MS-DOS, and Win32 use CR+LF
as the line terminator?" but rather "Why did other people
choose to differ from these standards documents and use some other
Unix adopted plain LF as the line termination sequence.
If you look at
the stty options,
you'll see that the onlcr option specifies whether
a LF should be changed into CR+LF.
If you get this setting wrong, you get stairstep text,
The unix ancestry of the C language carried this convention
into the C language standard, which requires only "\n" (which
encodes LF) to
terminate lines, putting the burden on the runtime libraries
to convert raw file data into logical lines.
The C language also introduced the term "newline" to express
the concept of "generic line terminator". I'm told that the ASCII
committee changed the name of character 0x0A to "newline" around 1996,
so the confusion level has been raised even higher.
Here's another discussion of the subject,
from a unix perspective.