It made perfect sense to us as well... until the clothes washer sprung a leak... I was lucky, caught it before it flooded us out. I since have installed a drain in the floor.
We moved our laundry up to the second floor during a recent remodel. The washer sits in a shallow basin designed to capture any leaks. Plus the area has a ceramic tile floor. My wife loves having the laundry in its new location. I reclaimed the space in the basement.