I don't believe it's a bug either, but I also don't believe in your storytelling :)
Fact is, that combined with the Crop feature, Mirror offers you a way to make seamless texture out of non-seamless bitmaps without any use of external editor programs like PhotoShop. It also gives the possibility to make "patterns" in a way ordinary tilling can't do.
Since this is a feature from times where seamless textures very quite rare (compared with today), where PhotoShop was extremely expensive, and (poor) digital patterns were "fascinating", that's IMHO more likely the reason for this feature.
But who knows? I don't know the inventor of the Mirror function. Do you?