"Who the hell" writes an OS in assembler in the 80s? Uh, some of the utilities are in C, but compilers were slow and generated slow code back then, and it was quite noticable on a slow machine. When every byte of memory counts, you often need to hand-optimize.
The Amiga's OS was written in 68k asm and BCPL (C's grandfather) for the kernel, and C was used for the utilities and GUI. But this was considered quite ahead of its time for a single user micro.