To prevent overheating. If you take a resistor and operate it at its
rated power, it will easily reach 100 Celcius, and if it's rated for
at least about 1/2W it can also burn your fingers, melt wire
insulation, make circuit boards discolor or char, and even soften
solder. I've been told to use resistors rated for at least twice the
maximum power they'll have to dissipate (or 4x the max for hot
environments, like in a car's engine compartment), and usually when
I've found a cracked or burned resistor, it had been running at very
close to its power rating.
You've just shown the problems that have always existed when a resistor
is used in a circuit which dissipates a lot of power.
The biggest reason why a lot of the situations you describe happened
wasn't due to the wattage rating, it was the mechanical designs used.
A lot had to do with airflow. Stuffing the resistor flat to the board
may have contributed to a little bit of heat-sink action, but unless
there were "big around planes" underneath... all you had was an eventual
board-burn. Raising the resistor off the board a ¼" cured a lot of that.
Pad-burn, melted solder, gray joints were also common with just 90° lead
bends. Simple thing like adding a full loop about ¼" often cured that.
Just another basic heat-sink idea...
As for "underhood stuff", blame the bean-counter mentality on that.