Apple was all about WYSIWYG. They chose their monitor resolutions so that there would be 72 dots per inch of screen real estate. 832 X 624 probably better matches 72 dpi on a 16" monitor than 800 X 600 does. Doing the math, I get a screen diagonal of 14.4" for 832 X 624 at 72 dpi. That is probably close to what 16" (AKA 17") CRTs actually delivered.
I liked that old philosophy much better than the current one of squeezing 1600 X 1200 dots into a 22" screen. Blech, who can read that after the age of 40?