It's to prevent an explosion if the cable wore and shorted to the engine!
Nothing to do with protecting the alternator....if that goes faulty, it's FAULTY!
You'll notice the newer cables have thicker insulation.
ALL fuses (both vehicle and household/etc are there to protect the CABLE....NOT whatever is connected.
It's the one good thing about the big UK plugs....they have a fuse inside from 1 to 13 amps....that depends on the size of the cable. (And the cable should be sized to the power of what is connected!).
Vehicle electrics are a little different. as only having 12 volts to start with, dropping a volt or 2 makes a difference.
When you have 230 to play with, losing a few volts makes little difference.
That's why a car bulb that takes 5 amps, "should" have much thicker cable than a household 60 Watt lamp. (That takes 0.3 amps......)
Alternators are "voltage regulated, current controlled", so will never provide more current than is required.
After 1st starting, it may supply 50 amps for a SHORT time, then drop to around 10-20 to charge the battery.....
But add on 15 amps for the head/sidelights, another 5 -10 for blower, 20 or more for aircon, 10 for heated rear screen, plus etc, etc....it soon adds up.
If you have a split charge system, the leisure battery will also requir current (quite a lot if it dis-charged over night).
Hence the reason Multivans/'velles have a bigger alternator fitted.
Remember, 40 years ago, 20 amp dynamos were common, then came the (whole) 28 amp Lucas alternators....plenty to cope with demands at that time.
35Watt headlights....no aircon, no rear heaters, no electric windows, etc etc.
With modern/more electronics in cars...that simply went UP.