I’ve spent a lifetime washing, folding, and hanging towels on clotheslines and bathroom bars, and I can tell you this much: those decorative bands near the ends are not there just to look pretty. Most folks notice them without ever really thinking about them, the same way we notice stitching on a quilt or a good hem on a dish towel. But once you know what they do, you start seeing towels a little differently.
This is one of those small household mysteries that turns out to be surprisingly practical.