So apparently one person lost to history said, "How big should it be? I don't know. Maybe about this big?" Centuries later, somebody at IBM said, "It looks like we could fit 80 columns on that. Good enough?"
Line length around 80 columns come from letter paper in a typewriter (via teleprinters) which in turn comes from book printing, where around 60–65 printed characters (plus blanks) were established as most readable centuries ago.
http://en.wikipedia.org/wiki/Large-sized_note
Which in turn apparently goes back to taking a common paper size and cutting it into reasonably-sized pieces:
http://ask.metafilter.com/262846/What-is-the-origin-of-the-d...
So apparently one person lost to history said, "How big should it be? I don't know. Maybe about this big?" Centuries later, somebody at IBM said, "It looks like we could fit 80 columns on that. Good enough?"