There's no reason for it, but ego, and emotionalism on both sides. Saying:
"I'm at a point where remote matters to me quite a bit, and I won't sacrifice pay for it. If you can't do it, I'll start applying with those who will, but I thought I owed you the honest truth."
It doesn't need to be emotionally driven. Just honest truth.
And I get that, as you say, bizarrely negative consequences can follow.
Me? I respect the truth. I can work with it. I want to hear it.
Many don't.
Yet, maybe this is an additional indicator of employer value, and potential toxicity?