Well, this is on-going confusion about O-scale and O-gauge. "O-scale" is 1/4" to-the foot scale (1:48), and is not directly related to the distance between the rails, which can be 1.25 inches for "O gauge," (or "Ow5," meaning 5 feet in 1:48 scale), or the correct 1:48 scale width of 1.177 (proto-48).
O-gauge is an old toy-train standard (more than a century old now) which was adopted years ago by "O-scale" modelers because the track and trucks were readily available, and they simply went on using those components in conjunction with accurately-scaled 1:48 models of rolling stock and locos. Most of us O-scale modelers have just gone along with that compromise, running beautifully detailed 1:48 models (O-scale) on 1.25"-gauge track (O-gauge).
A different approach, in the 1940's mostly, was to build models to 17/64" to the foot scale, in which case the conventional 1.25" track gauge (O-gauge) would be very close to 4 ft-8 1/2" at that scale. But this was a minority effort that never hit the big time.
Then, of course, along came Proto-48 in which the rails are spaced at the correct distance (1.177") for "O-scale." Of course, that requires the use different trucks for rolling stock and either newly designed or heavily modified "O-gauge" locomotives.