[Someone]

Not entirely self-evidently. Position independent code was slower at the time and avoiding having to patching function addresses at load time is a net win.

More importantly, there’s backwards compatibility. By the time the 8086 came out, people had spent serious money on getting binary-only software (WordStar cost hundreds of dollars, for example). “Buy this computer, and you can keep running the software you paid for, but faster” was a good selling point.

[rickas]

I wonder why couldn't Intel simply introduce single 'offset' register for apps ported from 8080, and make all other registers 20-24bit. Why bother with 4 different registers and all that segmentation nightmare?

[trollbridge]

Lots of benefits to a word size a power of 2.

Very few benefits to a clunky 24 or 20 bit word size; now it costs more and is a bizarre boutique architecture in a world where it needs to compete with 8 bit Z80s and 6502s.