Why they decided is discussed in Oracle bug #4513622 : (str) keeping a substring of a field prevents GC for object:
When you call String.substring as in the example, a new character array for storage is not allocated. It uses the character array of the original String. Thus, the character array backing the the original String can not be GC’d until the substring’s references can also be GC’d. This is an intentional optimization to prevent excessive allocations when using substring in common scenarios. Unfortunately, the problematic code hits a case where the overhead of the original array is noticeable. It is difficult to optimize for both edges cases. Any optimization for space/size trade-offs are generally complex and can often be platform-specific.
There’s also this note, noting that what once was an optimization had become a pessimization according to tests:
For a long time preparations and planing have been underway to remove the offset and count fields from java.lang.String. These two fields enable multiple String instances to share the same backing character buffer. Shared character buffers were an important optimization for old benchmarks but with current real world code and benchmarks it’s actually better to not share backing buffers. Shared char array backing buffers only “win” with very heavy use of String.substring. The negatively impacted situations can include parsers and compilers however current testing shows that overall this change is beneficial.