The shorter the cable, the lower the liklihood of a fault on that cable. Similarly, with underground installations, the likelihood of cable damage is low, and the liklihood of cable damage causing building fire damage is also low.
Also, there's practical considerations. For example, on the secondary of a transformer, you need to have some conductor length between the transformer and the downstream overcurrent protection, but the OC protection should be relatively close. Similarly, if you have an overhead line and you want to tap power off it, the base of the pole is a reasonable location to provide OC protection rather than at the top of the pole.
The tap rules address all of these issues.