C strings also allow you to do a 0 copy split by replacing all instances of the delimeter with null (although you need to keep track of the end-of-list seperatly).
As long as you clearly document that the incoming data is going to be modified, it's not a problem. And in a lot of cases, the data either comes from the network or is read from the file - so the buffer is going to be discarded at the end anyway... why not reuse it?
And yes, today it would be easier to make a copy of the data... but remember we are talking about 90's, where RAM is measured in megabytes and your L1 cache may be only 8KB or so.