All of that can be done from the gui wallet now. VPS's are constantly under attacks due to ssh and other various exploits. Having your funds on the VPS/exposed computer means they only have to gain access to your VPS to steal your funds. With the wallet segregated (client/masternode) they get nothing by exploiting the masternode.
This was recommended in previous versions. 0.12.2.4 enforces this now and future versions will as well.
Most investors with masternodes are not technologically inclined, and do not understand the security risks and mitigations in order to ensure their funds stay secured. Plenty don't even know to update their clients in order to continue to get rewards (as you can see from the masternode list). This move was to ensure the masternode network continues to stay secure moving forward with changes in the future. Plus, nobody likes to see their funds disappear because they used a weak password on their VPS.