Have you ever seen a keyboard cable catch fire? I have, on a IBM
built XT computer that I had just sold to someone. No damage to the
computer, but the keyboard was destroyed. If the cord had been on a
flammable surface, it would have started a fire.
I haven't seen it happen, but the threat was real enough to require
those fuses. Those power supplies are capable of a lot of current,
though I'd think that the board trace would fry before the cable would
catch fire. What was kind of bad is that people often blew the fuses by
powering stuff of the +5V from keyboard and mouse connector since the
picofuses were only 1/2 amp. At least with USB, the port shuts down only
temporarily if there's an over-current condition.
What was surprising is that there were customers that didn't care about
UL/CSA/TUV and we built boards with a zero ohm resistor instead of the
fues for them. This could not have saved more than 4-5 cents (for two
fuses), but the margins on motherboards are so terrible that they were
watching the pennies. Ditto for the back-up batteries. The Tadiran UL
approved batteries were more expensive than the non-UL batteries so the
Tadiran batteries were used only on boards going to customers that cared.
We sold boards to a major computer store chain (now defunct) who had
every store become a UL certified factory, and UL inspectors went to
their stores to inspect their "factory." Once some boards got shipped to
them from Taiwan with non-UL batteries and the UL inspectors caught it.
I had to explain to the factory why they had to use the more costly
batteries because they couldn't fathom it.