Aside from not being fair chase I can't see any other reasons.

A quote from the Pope & Young fair chase rules: The term "Fair Chase" shall not include the taking of animals under the following conditions:

7) By the use of electronic devices for attracting, locating, or pursuing game or guiding the hunter to such game, or by the use of a bow or arrow to which any electronic device is attached.

It is clear that to me it gives an unfair advantage to the hunter. I can certainly see the point about recovering game better but if the arrow is placed properly you'll get pass through rendering the tracking device useless. This is just another device that is on the market that pushes the limits of fair chase.