I wonder why that's DEVS: and not D:. I thought it had been added post-TripOS but obviously not.
I noticed that too. At least AmigaOS fixed the inconsistency by adding a new style "Libs" to go with the "Devs". Maybe they should have put the Classes in LIBS: though as the gadgets and datatypes are libraries. Then again, devices are libraries also, showing the Amiga was object oriented from very early. Building structures on structures like this is very efficient, Passing the structures as pointers in registers to function calls (without entering supervisor mode either) is still the most efficient way today. Tag lists which were introduced later are not as efficient. C is still the most efficient high level language too.
Agreed, that would be convenient. For the sake of argument, though, I'm wondering if there is a reason for why it's designed as it currently is, i.e., are there conditions under which one might want to reassign SYS: but keep C:, Libs:, Devs: etc. in their original places. Maybe it was just too complicated to implement at the time, since it would require the Assign command to recognize SYS: as a special entity.
I believe the current AmigaOS way of doing assign is the fastest and most memory efficient. It would be possible to store the original relative assign along with the optimized version which would be used most of the time for little extra memory cost today. More CPU processing would be required when an assign is changed as well. It may be possible to add relative functionality in a compatible way with a new assign command option.
The manual even says "If you are so lucky as to have a hard disk..." 
But the memory thing surprised me too. I wonder what kind of machines Tripos was meant to run on? Did high-end 68000 workstations exist at universities or similar institutions? What other 68000 machines of that era could Tripos have targeted?
Yea, that's the quote I remembered but I was too lazy to go back and look it up for you.
The 68000 made a poor mans workstation. It lacked supervisor functionality common in workstations and servers but was otherwise similar to the VAX and PDP-11. The 68000 was more orthogonal with more registers than most cheaper <=16 bit processors, had 32 bit registers and wide operations from the beginning and didn't have to worry about memory banks or anything like that. This made it a better target for C compilers (and thus the AmigaOS) than most cheaper processors. The supervisor functionality was improved with the 68020 and then again with the addition of the MMU in the 68030. The 68020-68040 were popular in low end (affordable) workstations and servers. Then the RISC hype came along with Motorola's anti-68k marketing which killed the market even though the 68060 was a better CPU for the price (including how much memory was needed with it) than its replacements.