I also always preferred the interpretation of a newline as a separator instead of as a terminator for files because I never liked the final newline causing a new empty line in the editor and as you thought that it was bad design that you can have a somewhat invalid file.
But if you look beyond files, the interpretation as a terminator also makes perfect sense, when you receive text over a serial connection it signals that the line is complete which does not necessarily imply that another line will follow. The same in a file, if the terminating newline is missing, you can deduce that an incomplete write occurred and some data might be missing. If you decide to have a newline as a separator after the last line but to ignore it, then you can not represent an empty last line.
I guess you would need two different characters, one terminator and one separator. You could start a line with \n and end it with \r. The \n separates the line from the one before, then \r terminates the line and marks it as complete. You would get \r\n between lines as on Windows and the last line would only have \r if complete or would otherwise count as incomplete. Then again you could almost get the same thing with \n only, you would just have to change the interpretation, instead of \n giving you a line and no \n giving you not a line, you would have to say that \n gives you a complete line and no \n gives you an incomplete line. With that you could however not have an incomplete empty line.
This effort of building in redundancy is pointless. We just need a newline to know where to start the output on a new line. If you want to safeguard the proper content of a file, a whole lot more is needed.
But if you look beyond files, the interpretation as a terminator also makes perfect sense, when you receive text over a serial connection it signals that the line is complete which does not necessarily imply that another line will follow. The same in a file, if the terminating newline is missing, you can deduce that an incomplete write occurred and some data might be missing. If you decide to have a newline as a separator after the last line but to ignore it, then you can not represent an empty last line.
I guess you would need two different characters, one terminator and one separator. You could start a line with \n and end it with \r. The \n separates the line from the one before, then \r terminates the line and marks it as complete. You would get \r\n between lines as on Windows and the last line would only have \r if complete or would otherwise count as incomplete. Then again you could almost get the same thing with \n only, you would just have to change the interpretation, instead of \n giving you a line and no \n giving you not a line, you would have to say that \n gives you a complete line and no \n gives you an incomplete line. With that you could however not have an incomplete empty line.