Gerry has hit the nail on the head, until recently this was the accepted norm, although recent experiments by Human Powered Vehicle builders (in an attempt to reduce frontal area) have indicated that there may be no significant loss of efficiency using very short cranks of around 100mm (if I remember correctly).
The theory is that since cranks are levers and gears are (effectively) levers, as long as you reduce them both by the same ratio there's no difference in the systems ability to transfer power from your legs to the drive wheel. We know that the limit to our power output is determined by how fast we can deliver oxygen to our muscles, maybe crank length is less critical that we thought.
This doesn't necessarily apply to regular diamond frames but it's food for thought. It'll be interesting to see what develops.
I use 175s on my MTB and 172.5s on my Road bike and I can't feel any difference at all.