From the perspective of someone who has serviced laundry equipment for many years, I will offer these comments on what is BAD about installation areas.
1. Basements in older houses have lousy floors. Not every cellar that I have been in looks as good as the one pictured above. (I must admit that the description is so accurate.) We always took pieces of carpets on service calls, for use when lying down on cold, damp, broken concrete floors, especially when working in the back of a belt-driven WP. Add the spider webs and accumulations of dryer lint, and you get the picture.
2. Basements are either too hot, or too cold, depending on the furnace. Most likely, the furnace is an oil-burning, smelly behemoth, with asbestos-covered piping at head-level. If that furnace is at the other end of the cellar, you don't get the heat from it. Even modern gas furnaces can be too hot to be next to. Electric-heated house can be worse, if there is no heat in the cellar. We once got a call for a dryer not working. The cause? The vent was completely blocked by frozen lint.
3. Basements may not have a hatchway. Sure you can carry a toolbox down the narrow, winding stairs, but delivering a washer is not that easy. One house we went to actually expanded the floor of the kitchen, covering part of the stairway. We had to slither down the space to get into the cellar.
4. Closets leave very little room for working, especially if you had to get behind the appliance. Broken hoses, bent dryer vent hoses, etc., become difficult to fix.
I could go on, but you get the idea.