I'm in my 40s.
Dad was no kind of axe lover, he just used them at work, and we cut a lot of firewood. He took no care to treat them right, let alone nice. But he wanted it to stay on.
He always left the top a little proud. I heard other fallers he worked with say something about it before too. This was not new ideas they were tossing around, more like old time tips for the new kid.
None of these guys gave a damn about the aesthetics, history, or what the other guy thought.....they just wanted it on to stay. Half the summer there was a bucket of antifreeze with axe handles sticking out in the bed of their trucks.
All this to say, I don't think it's a completely new or very recent idea. Maybe it was just more common in the PNW, or something.
No idea, but they thought it helped. Maybe all it did was delay the inevitable, but that's enough to get you through the week, or even just the day sometimes. At least you got your scale cut, and can fix it at home after you grind your chains.
And probably because they weren't too obsessive about every detail when they slammed a new handle in, extra security was a good idea.