It does seem backwards, but in a two wire system, although the potential to ground is zero from the neutral, and though it's grounded and currentless at the breaker box, it's carrying load between breaker box and appliance. It's one reason that proper installations these days include both a neutral and a ground wire, even though they are at the same potential, and why it's against code to wire the ground and neutral terminals together on an outlet. The neutral carries current, but the ground (we hope) does not.
Why the wide terminal is neutral is a bit of a mystery, and it may just be an arbitrary choice that stuck, but I speculate that, especially in the older two wire polarized system, where there is no separate ground, it was thought safer to give the neutral higher ampacity, and a more foolproof connection, than the hot, as a neutral failure would be more deadly. Remember too that the original polarized outlet and plug system was shared by both AC and DC. But I would not be surprised to find that the real reason is that Thomas Edison flipped a coin.