Certainly in the computer age the extra space now seems more distracting to our eyes because our perception has changed after decades of seeing texts without it. So yes, the width issue may indeed be less relevant than simple cultural habit, à la, Why do the French put spaces before question marks? Because they're French. ;-) In fact in typesetting circles double-spacing after periods seems once to have been known in the U.S. as "French spacing."
But readability may also be a factor. I am no expert but it seems to me that fixed-width fonts may have both inherently wider letters and inherently wider average spacing between one letter and the next, since the letter spacing has to be wide enough for M as well as for I. Thus increasing visual separation between sentences might aid comprehension when all the letters are more spread-out.
I also was taught the two-space method and stuck to it valiantly even into the early days of word processors, probably because word-processed text at that time was designed to resemble typed text and in fact was often similarly limited in font selection. Remember dot-matrix and daisy-wheel printers? But as soon as Times became the default the practice started to wane, and now most teachers and editors explicitly warn against it.
Most discussions of the issue seem to be people adamantly defending either the old method or the new. This one from the point of view of professional typesetters was more interesting if perhaps still not historically conclusive.
http://www.typophile.com/forums/messages/30/2...