There are few disadvantages for the traders with this decision.

One disadvantage is buyers who really want to buy bitcoin in person to avoid from scams will loose that opportunity by removing this option. May be we can expect an increase of victims of scammers in localbitcoins because of this.

The other one is that, there are lot of people who don't have even a bank account. Now, there is a barrier to those traders as they cannot find buyers and sellers who sell or buy BTC in person.