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It's either that or every other $20 bill winds up being counterfeit, or at least having no security checks so that your average cashier can't tell the difference.

I know my paper money, being a collector, unlike some here, and I got a 1963 $20 from the ATM machine a year back, and while I'd ordinarily put it in my collection, it was a little beaten up and had some writing on it so I spent it. The cashier just stood staring at it trying to figure out if it was real or not because those bills have absolutely no security measures on them. No hologram number 20 on the front, no strip running through the left of the bill, no watermark, nothing. She only took it because my girlfriend sternly told her "It's real." That, and the cashier obviously didn't care, since "It's real" was good enough for her. The point is, while they may not be the most aesthetically pleasing things to add, all these watermarks and different colors serve a functional purpose.