Not only does it help with release alignment as Greg mentioned, it also allows you to virtually eliminate any nock pinch and custom tailor each set to the exact nock style you are using without fear of that loop pressure changing.

Another benefit I see seldom mentioned.......if your loop wears or needs replacing to fine tune anchor etc the nock sets already have your tune built in without need to re-find your exact nock set. You can simply cut off the old loop and retie a brand new one without worrying about changing a thing with respect to nock height or nock fit.
good stuff.