I can think of two reasons.
First is reduced drag. If the trailer is extending past the profile of the tow vehicle (either taller or wider) it's gonna drag. If it's the same or less as the tow, it'll drag much less as it'll basically just be drafting behind it.
The second reason to keep height down is so you can roll it into a garage. My garage door only has a 6'10" clearance (fairly typical of garages using 7' doors - you lose some in the trim). Having a real short trailer lets me roll it into my garage for the winter.
For my own interest - I don't need a trailer to be all THAT tall. Around 95% of the time I'm in it I'm either laying down in bed or sitting at a table. If I was going to install a dance floor - I'd worry more about headroom, but I'm not planning on that.
