My understanding is that in the canals' heyday, wages were high enough for a family rent a house on land, and that the "tradition" of families living aboard only came about when competition from the railways depressed wages. I can't think that the canal companies would have tolerated large-scale static residential mooring as it would have slowed down commercial traffic, especially when horse power was the norm.
When we first started taking canal holidays in the 1970's, there was seldom need to slow down past moored boats. Nowadays the frequent need to slow down past the stretches of what seem to be permanent moorers, even away from large conurbations, has put my wife off the idea of taking any more canal holidays.