Useless soffit on on low ceiling. Cover-up or stupid aesthetic?
It was popular in the 1980s and 90s to have soffits above the kitchen cabinets. So to directly answer your question Yes there is some justifiable reason to have remodeled to then-current trends, such as if one was trying to maximize resale value at the time, or were just beginning to modernize the entire house. Of course that is based on personal preferences, how the remodel matches the rest of the house, neighborhood, etc.  Clearly you do not like the choices the previous owners had made in the 1990's to follow then-current design trends, although one could guess they probably shared your loathing for the original 1940's styles (or lack thereof) and were similarly trying to do something about it on a reasonable budget, and that is a common thing that people do.  

Its funny to think that if you do modernize your interior to today's design trends, then thirty years from now the future owner will think the dated look is also stupid!

Oftentimes in practice soffits only cover up empty space above the cabinets, which, at the time they were installed was a design trend in new construction and remodels.  The only reason they were installed was to cover up the 'unsightly' void which was considered unpopular at the time. I have removed soffits from an old house that were installed in the 1990s and found nothing behind them, but that doesn't means yours are that way!  

Here is a website that talks about this design trend, and with several pictures of how to make them look nicer.