Historical reasons, mostly. FillChar() dates back to the Turbo Pascal days and was used for such purposes. The name is really a bit of a misnomer because while it says FillChar(), it is really FillByte(). The reason is that the last parameter can take a char or a byte. So FillChar(Foo, SizeOf(Foo), #0) and FillChar(Foo, SizeOf(Foo), 0) are equivalent. Another source of confusion is that as of Delphi 2009, FillChar still only fills bytes even though Char is equivalent to WideChar. While looking at the most common uses for FillChar in order to determine whether most folks use FillChar to actually fill memory with character data or just use it to initialize memory with some given byte value, we found that it was the latter case that dominated its use rather than the former. With that we decided to keep FillChar byte-centric.
It is true that clearing a record with FillChar that contains a field declared using one of the “managed” types (strings, Variant, Interface, dynamic arrays) can be unsafe if not used in the proper context. In the example you gave, however, it is actually safe to call FillChar on the locally declared record variable as long as it is the first thing you ever do to the record within that scope. The reason is that the compiler has generated code to initialize the string field in the record. This will have already set the string field to 0 (nil). Calling FillChar(Foo, SizeOf(Foo), 0) will just overwrite the whole record with 0 bytes, including the string field which is already 0. Using FillChar on the record variable after a value was assigned to the string field, is not recommended. Using your initialized constant technique is a very good solution this problem because the compiler can generate the proper code to ensure the existing record values are properly finalized during the assignment.