Usually under traditional linux it is for security reasons, if a hacker exploits an vulnerability the attack is isolated to that user and has no rights for directories which are made by root.
For linux it is common sense to not use root, however since OpenWrt doesn't have a real 'user' system due to busybox, often it is normal to use root, also because a router isn't open as a server to wan, unlike linux.
I guess it is more an remnant from porting from normal Linux, not a big deal.
You could also use this methodology on Windows, Windows also protect processes by an SID this acts as some sandbox between users.
For reference, here’s the code that populates the x as the password value for user IDs included with packages. Are you asking why it isn’t an asterisk instead?
Yes, I was just wondering why there isn’t asterisk, for I was thinking that users with * instead of password are most protected and secure way to ensure safety of a system. Many thanks to all for their answers!