The reason that the royal flush is highest is not a historical thing. It is purely mathematical. Probability-wise, hitting a royal flush is the rarest hand in poker, with odds of 1/649,740. Hitting any straight flush, including royal flushes is a probability of odds 1/64,964.
The math behind this is actually pretty simple. From the beginning, the chance of getting one card needed for a royal flush is 20/52. Once you have that, there are 4/51 cards...then 3/50....then 2/49....then 1/48. By the rules of probability, to get the odds of this, you multiply these together. When not reduced, that fraction is 480/311,875,200. It just so happens that 480 goes evenly into 311,875,200. This reduces to 1/649,740.
The math for a straight flush is honestly even easier. There are 40 combinations of straight flush available.
A 2 3 4 5
2 3 4 5 6
3 4 5 6 7
4 5 6 7 8
5 6 7 8 9
6 7 8 9 10
7 8 9 10 J
8 9 10 J Q
9 10 J Q K
10 J Q K A (Royal)
Those are the 10 straight combinations. Multiplied by the 4 suits gives you 40 possible combinations of a straight flush.
There are 52 cards in a deck of cards. Meaning the total amount of possibilities of card combinations you can have is 52! (factorial). Since we are looking for 5 card combinations...the formula is B! / (A! * (B - A)!) where B is 52 (cards in deck) and A is 5 (number of combination).
You then end up with 52! / (5! * (52 - 5)!) --> 52! / (60 * (47!))
After some typing into my calculator...that gives you 2,598,960.
40 possible straight flushes... 40/2,598,960 = 1/64,974.
Also works with the royal flushes...don't know why I did that the long way.
4 possible royal flushes... 4/2,598,960 = 1/649,740.
Sorry if the math hurts anyone's head, but it had to be done
And this should debunk anyone who thinks that the odds of getting a straight flush are the same as the odds of getting a royal flush. I lol'd at those posts.