Is that really true, if so, what's your basis? Fourier used i for the same purpose, and it definitely became a pretty standard indexing variable long before the 1950s.
Most early code written in FORTRAN was essentially just transcribing formulae and algorithms that already would use such variable names.
The original language design was constrained by primitive thinking and lack of experience. The nature of computers in 1957 had no bearing on such things as variable names starting with I-N being implicitly integers ... that followed existing mathematical practice.
"that followed existing mathematical practice". Not what I would call primitive thinking. It set out to handle math quickly and it succeeded. I/O wasn't its strength, and I'm sure the latest versions look like verbose C.
The reason 'i' was the first letter available was because by default identifiers starting with, I think, I-N were integers instead of float.
When I first started, with BASIC, my variable of choice was T simply because it was easy to type NEXT T in the FOR loops (why not R? I dunno...T just stuck).