TP4 assumed a reasonably reliable data path, probably an X.25 virtual circuit, underneath. It didn't have all the timing, reordering, retransmit, and congestion control machinery that lets TCP work over bad links.
On the other hand, the OSI crowd had, at the time, more experience with scaling and routing. IP's class A, B and C networks, autonomous system numbers, and Border Gateway Protocol didn't scale well. Routing in the Internet is still something of a hack. Today's routers almost have to have an in-memory table mapping all 4 billion IPv4 addresses to Autonomous System Numbers. If memory wasn't so cheap, we'd be having real problems.