I think it may have developed from hand drawings. Upper case is mostly straight lines so its easier to print faster and more legibly e.g. a A e E f F h H m M n N. Upper case also avoids spacing problems from dangling lower case letters such as j, p, g, q, y.
yup -- all upper case is a hold over from the manual drafting days. much faster to do straight strokes for all lettering by hand, than trying to fit tiny curves into the sentence. Especially if you used an ames to set the line spacing and stroke angle. Heck, the tradition may go all the way back to medieval times, when scribes used upper case only, since that was pretty much the only letterforms in use.
today, with computer generated lettering, kerning, and ttf fonts adapting weight to height, it's not essential - just traditional. Arguably, all upper case is harder to read in a wall of text - if it was easier that's what the phone book would use.