I'm sure part of it was ventilation. Before air conditioning and electric fans, a higher ceiling allowed warm air to rise to the ceiling, keeping the air at "person level" a little cooler. That's also at least part of why older houses had a standard 12' interior height for each floor, whereas 8' has been the norm for many years now.
There's also an asthetic concern, a large room with a low ceiling just looks very cramped and unappealing. I'm sure an architect could tell you a specific ratio that they use as a rule of thumb, like 'the ceiling height should be at least X% of the length or width of the space' or something like that.
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