It should be. I believe it was Confederate vice president Alexander Stephens who coined the term "War Between the States.
>> shouldnt it be: The War AMONG the States? <<
No, certainly not. There were only two sides in that war:
1. The United STATES of America, and
2. The Confederate STATES of America.
There was no third grouping of “states” — for example, no “Independent States of America” or no “Federal States of America.”
Therefore, since the war involved just two sides, each of which titled itself as a collection of “states,” then the operative preposition clearly should be “between” — as opposed to “among.”