GE was a water hog because, like the older solid tub models, the inner tub was suspended within the outer tub rather than both being suspended together. As such, there needed to be quite a large gap between the two tubs for movement during spin which in solid tub models wouldn't have water in it until spinning, but in perforated tub models was filled as well for washing and rinsing.
Why this happened was quite simple, GE, always ones to cut costs, wanted a perforated tub and made no real effort to actually redesign the machine, they just put a tub with holes in and called it done. Don't even get me started on the terrible quality of GE's electronics, but to say simply, you will never find a 1960s GE color TV as they hardly lasted 2-3 years let alone 50 like the RCA in my living room.